USDJPY, H1

The Dollar has remained mostly in narrow ranges so far today against the other main currencies, with the exception being the Yen, which has continued to see its safe haven premium deflate. USDJPY printed a fresh six-week peak at 107.84, in what is now a third consecutive day of ascent, which is in turn amid a third consecutive week of gains. AUDJPY and GBPJPY also posted respective six-week peaks, while EURJPY saw a fresh one-month high. News that the very hawkish US national security adviser, John Bolton, was fired by Trump has been something of a tonic for markets, maintaining buoyancy in global stock markets while sparking a 1%-plus dive in oil prices. Gold, the other traditional safe haven asset, also saw continued selling pressure. It closed a fourth consecutive day lower at 1485.50 and below a key Fibonacci level at 1486.00. A recovery in the Asian session has seen a breach of the daily pivot at 1490 and a first test of 1495.

XAUUSD

Elsewhere, both EURUSD and Cable remained in narrow ranges, underpinned following recent gains, but below recent highs. US CPI and retail sales data are up later in the week, with expectations of an ongoing benign price picture and a flat performance in the retail sector. While in-line data wouldn’t be a dollar-buying cue, neither should it prompt sell button reaction. Another focus (and the key event of the week) is tomorrow’s ECB meeting, which comes with updated staff projections and is widely expected to see the ECB introduce further easing measures. The event risk is that the package of measures will fall short of what markets have been pricing in, because without regulatory changes there is limited room for government bond purchases to be extended significantly.

Yen

Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.

Analysis feed

Latest Forex Analysis

Editors’ Picks

EUR/USD extends its decline amid upbeat US consumer confidence

EUR/USD is extending its falls toward 1.1050 after US Consumer Sentiment beat expectations with 92 points. Earlier, retail sales met expectations. 

EUR/USD News

GBP/USD rises above 1.24 as Brexit uncertainty prevails

GBP/USD hits a 6-week high above 1.24. The DUP dismissed reports that it would accept special treatment for the province as a solution to the backstop. The EU is ready to grant a Brexit extension as Johnson faces growing criticism.

GBP/USD News

USD/JPY: holding in higher ground ahead of US Retail Sales

Risk appetite dominates the financial world, weighing on safe-haven assets. US Retail Sales and the preliminary Michigan Consumer Sentiment Index up next. USD/JPY bullish case prevails, 107.45 critical Fibonacci support.

USD/JPY News

The good, the bad and the extremely ugly crypto

XRP is in a borderline situation and with little room for doubt. Bitcoin demonstrates its power and positions itself as the emerging leader. Ethereum is in an intermediate situation, far from risk but also from opportunity.

Read more

Gold remains on track to end week below $1,500

The troy ounce of the precious metal rose above $1,500 but failed to preserve its strength as the upbeat market sentiment made it difficult for the safe-haven gold to find demand. 

Gold News

Forex Majors

Cryptocurrencies

Signatures