Talking-Forex.com
Talking-Forex.com
Overview
Wednesday’s FX session played out as many expected it to, with Tuesday evening’s Yellen speech in NY setting the stage for further weakness in the USD. Early Europe proceeded with a stronger EUR/USD push through 1.1300, and later in the day – with the help of North American markets – we extended through the recent 1.1342 highs, with the Feb peak at 1.1375 now in the line of fire. Cable was an easy target also, trading to 1.4450, and although only managing another 5-10 ticks beyond this, NY look set to test levels closer to 1.4500. AUD/USD highs at .7680 were taken out in am London, but we continue to run into decent offers above .7700. .6900 was a long term resistance point for the NZD, but was erased with ease. Focus turned elsewhere once removed, but prospect for .7000+ now very much on the cards.
USD/CAD found some initial support at 1.3000 through Europe, but once breached, it was not long until focus turned to the 1.2920 base seen almost 2 weeks ago. With the aid of a smaller Crude build reported by the DoE, we broke through this level to maintain the USD selling momentum. The USD index through 94.578 should generate another round of USD sales, and North American players will almost certainly push for this. ADP came as expected at 200k up, but only a strong showing in the US payrolls number on Friday can help stop the USD rot, though month end flow Thursday may apply some near term support.
Daily FX Wrap: Post Yellen fallout continues as USD rout seen across the board. Commodity currencies take out notable highs – NZD through .6900.
The information within this website has been prepared and issued by Talking Forex on the basis of publicly available information and other sources believed to be reliable. Whilst all reasonable care is taken to ensure that the facts stated are accurate, neither Talking Forex nor any director, officer or employee shall in any way be responsible for its contents. This document is intended to provide clients with information and should not be construed as an offer or solicitation to buy or sell securities.You may cancel your service at any time, just contact us from the FAQ/support page quoting your registration email address and we will cancel your subscription as of the next billing cycle or refund your trial deposit.
Recommended Content
Editors’ Picks
AUD/USD extends its upside above 0.6600, eyes on RBA rate decision
The AUD/USD pair extends its upside around 0.6610 during the Asian session on Monday. The downbeat US employment data for April has exerted some selling pressure on the US Dollar across the board. Investors will closely monitor the Reserve Bank of Australia interest rate decision on Tuesday.
EUR/USD: Optimism prevailed, hurting US Dollar demand
The EUR/USD pair advanced for a third consecutive week, accumulating a measly 160 pips in that period. The pair trades around 1.0760 ahead of the close after tumultuous headlines failed to trigger a clear directional path.
Gold holds below $2,300, Fedspeak eyed
Gold price loses its recovery momentum around $2,295 on Monday during the early Asian session. Investors will keep an eye on Fedspeaks this week, along with the first reading of the US Michigan Consumer Sentiment Index for May on Friday.
Bitcoin Cash could become a Cardano partnerchain as 66% of 11.3K voters say “Aye”
Bitcoin Cash is the current mania in the Cardano ecosystem following a proposal by the network’s executive inviting the public to vote on X, about a possible integration.
Week ahead: BoE and RBA decisions headline a calm week
Bank of England meets on Thursday, unlikely to signal rate cuts. Reserve Bank of Australia could maintain a higher-for-longer stance. Elsewhere, Bank of Japan releases summary of opinions.