Littlefish FX Analysts
Littlefish FX
KEY DATA RELEASES TODAY (GMT) :
1030 USD FOMC Member Fischer Speaks
1230 USD Final GDP q/q 2.4% 2.2%
1400 USD Revised UoM Consumer Sentiment 92.5 91.2
1945 USD Fed Chair Yellen Speaks
OVERNIGHT:
EURUSD had a firm rejection of the topside overnight. Interbank flow reports suggest high turnover at the 1.1000 handle with decent offers re-emerging for the third day running. It is this persistent replenished supply which eventually won over and again it happened as NY entered the fray. The market could not take out 1.1060 and that failure looked to have had the biggest impact. Clearly a lot of EURUSD bearish strategies have been pared back but that level should now prove to be an interim line in the sand on future attempts higher. A close below 1.0860 would be key tonight and with Yellen speaking later we could be in for an interesting close. US GDP revisions are also on the agenda.
The selloff in USDJPY continued in the early London session, marking a low of 118.33. The USD, however, found fresh legs in the NY session. Inflation data continued to show weakness, with core CPI exfood falling to 0 pct. This has also lifted some expectations of further BOJ policy easing needed. Short term and tactical trading is clearly the way to go for now, with a bias being to the downside, 119.60 serves as the initial resistance to the topside, while 119.00 and 118.80 are the initial supports.
Price action after the stronger than expected retail sales figures was indicative of the path of least resistance for cable. Decent selling interest ahead of the psychological 1.5000 level was enough to cap the pair’s rally, and the broad USD recovery brings the pair back in the ever familiar 1.48 handle. Anticipating real money lightening up ahead of the elections, given the doveish profile of the BOE. The pair however needs a break of 1.4800 to get bears excited again
PRICE ACTION OVERVIEW:
EUR: While 1.0760/40 supports target 1.1190/1.1210 equality corrective target
GBP: While 1.5030/50 contains upside target 1.4630
JPY: While 118 contains downside target 124.00
CAD: While 123.50/124 contains downside target 130
AUD: While .7940/6- contains upside target .72
All comments, charts and analysis on this website are purely provided to demonstrate our own personal thoughts and views of the market and should in no way be treated as recommendations or advice. Please do not trade based solely on any information provided within this site, always do your own analysis.
Recommended Content
Editors’ Picks
AUD/USD: Further losses retarget the 200-day SMA
Further gains in the greenback and a bearish performance of the commodity complex bolstered the continuation of the selling pressure in AUD/USD, which this time revisited three-day lows near 0.6560.
EUR/USD: Further weakness remains on the cards
EUR/USD added to Tuesday’s pullback and retested the 1.0730 region on the back of the persistent recovery in the Greenback, always against the backdrop of the resurgence of the Fed-ECB monetary policy divergence.
Gold flirts with $2,320 as USD demand losses steam
Gold struggles to make a decisive move in either direction and moves sideways in a narrow channel above $2,300. The benchmark 10-year US Treasury bond yield clings to modest gains near 4.5% and limits XAU/USD's upside.
Bitcoin price dips to $61K range, encourages buying spree among BTC fish, dolphins and sharks
Bitcoin (BTC) price is chopping downwards on the one-day time frame, while the outlook seen in the one-week period is a horizontal trade. In this shakeout moment, data shows that large holders are using the correction to buy up BTC.
Navigating the future of precious metals
In a recent episode of the Vancouver Resource Investment Conference podcast, hosted by Jesse Day, guests Stefan Gleason and JP Cortez shared their expert analysis on the dynamics of the gold and silver markets and discussed legislative efforts to promote these metals as sound money in the United States.