Forex Majors: The calm before the storm

Russell Sandiford Reiwa-Capital.com

There is one powerful trend noticeable across Forex majors at present, being; very tight & quiet trading ranges.

An eerie holding pattern seems to have set in across key FX majors & commodities as follows:

USD/JPY – Just above 109
EUR/USD – Just above 1.10
AUD/USD – Just around 0.6780
GOLD – Firmly at $1,460

My most noticeable exception is Oil making a run up above $58 last night as the OPEC agreement around Oil output CUTS helped to lift WTI (Oil), as well as the continued slide lower for GBP/USD.

GBP/USD, now dealing at 1.2850, after a brave rally towards 1.2920 to kick-start this trading week.

I must say, the UK election seems to be sailing directly into the “hung parliament” storm, which in the near-term will drag GBP/USD LOWER.

Looking at the 4-hourly GBP/USD chart, the Bollinger bands indicating changes in volatility are steady – which is better compared to most FX majors where volatility has all but disappeared.

Author

Russell Sandiford

Reiwa-Capital.com

Russell Sandiford is one of the most reputable market analysts in Australia with over 16 years’ experience in the global FX, indices and commodities markets.

EUR/USD hits two-day highs near 1.1820

EUR/USD picks up pace and reaches two-day tops around 1.1820 at the end of the week. The pair’s move higher comes on the back of renewed weakness in the US Dollar amid growing talk that the Fed could deliver an interest rate cut as early as March. On the docket, the flash US Consumer Sentiment improves to 57.3 in February.

GBP/USD reclaims 1.3600 and above

GBP/USD reverses two straight days of losses, surpassing the key 1.3600 yardstick on Friday. Cable’s rebound comes as the Greenback slips away from two-week highs in response to some profit-taking mood and speculation of Fed rate cuts. In addition, hawkish comments from the BoE’s Pill are also collaborating with the quid’s improvement.

Gold climbs further, focus is back to 45,000

Gold regains upside traction and surpasses the $4,900 mark per troy ounce at the end of the week, shifting its attention to the critical $5,000 region. The move reflects a shift in risk sentiment, driving flows back towards traditional safe haven assets and supporting the yellow metal.

Crypto Today: Bitcoin, Ethereum, XRP rebound amid risk-off, $2.6 billion liquidation wave

Bitcoin edges up above $65,000 at the time of writing on Friday, as dust from the recent macro-triggered sell-off settles. The leading altcoin, Ethereum, hovers above $1,900, but resistance at $2,000 caps the upside. Meanwhile, Ripple has recorded the largest intraday jump among the three assets, up over 10% to $1.35.

Three scenarios for Japanese Yen ahead of snap election

The latest polls point to a dominant win for the ruling bloc at the upcoming Japanese snap election. The larger Sanae Takaichi’s mandate, the more investors fear faster implementation of tax cuts and spending plans.

XRP rally extends as modest ETF inflows support recovery

Ripple is accelerating its recovery, trading above $1.36 at the time of writing on Friday, as investors adjust their positions following a turbulent week in the broader crypto market. The remittance token is up over 21% from its intraday low of $1.12.