Chief currency strategist at DailyFX.com, John Kicklighter joins Merlin for a look at some of the events and data impacting currencies around the world. First comes the Euro, which has been flirting with a strong supply level, yet unable to break! John offers his thought on the ECB’s actions and why this is the line in the sand for the Euro. Later, the duo breaks down the current trajectory in the Pound and the Yen, both of which offer some great trading opportunities. Merlin also looks at some tools, such as the SSI, which helps traders understand where the money is flowing in a variety of instruments.
Editors’ Picks
EUR/USD clings to small gains near 1.1750
Following a short-lasting correction in the early European session, EUR/USD regains its traction and clings to moderate gains at around 1.1750 on Monday. Nevertheless, the pair's volatility remains low, with investors awaiting this weeks key data releases from the US and the ECB policy announcements.
GBP/USD edges higher toward 1.3400 ahead of US data and BoE
GBP/USD reverses its direction and advances toward 1.3400 following a drop to the 1.3350 area earlier in the day. The US Dollar struggles to gather recovery momentum as markets await Tuesday's Nonfarm Payrolls data, while the Pound Sterling holds steady ahead of the BoE policy announcements later in the week.
USD/JPY weakens to near 155.00 amid BoJ rate hike bets, US data awaited
The USD/JPY pair loses traction to around 155.10 during the early Asian session on Tuesday. The Japanese Yen edges higher against the US Dollar amid the expectation that the Bank of Japan will raise interest rates at the upcoming policy meeting on Friday. Traders will closely monitor key US economic data, including Nonfarm Payrolls, Retail Sales, and Purchasing Managers Index, which are due later on Tuesday.
Editors’ Picks
AUD/USD bulls remain on the sidelines after Aussie PMIs
AUD/USD trades with a negative bias for the fourth consecutive day on Tuesday, as recent mixed Australian labour market data and renewed concerns about the health of the Chinese economy undermine the Aussie amid a softer risk tone. However, the RBA's hawkish tilt and data showing a continuous expansion in Australia's business activity in December support the pair amid a weaker US Dollar, led by bets for more rate cuts by the Fed. Traders now look to the delayed US NFP report for some impetus.
USD/JPY weakens to near 155.00 amid BoJ rate hike bets, US data awaited
The USD/JPY pair loses traction to around 155.10 during the early Asian session on Tuesday. The Japanese Yen edges higher against the US Dollar amid the expectation that the Bank of Japan will raise interest rates at the upcoming policy meeting on Friday. Traders will closely monitor key US economic data, including Nonfarm Payrolls, Retail Sales, and Purchasing Managers Index, which are due later on Tuesday.
Gold holds gains above $4,300 on prospect of further Fed rate cuts
Gold price extends its upside to around $4,305, the highest since October 21, during the early Asian trading hours on Tuesday. The precious metal edges higher on further US Federal Reserve cut bets. The US Nonfarm Payrolls report will take center stage later on Tuesday. Also, the US Retail Sales and Purchasing Managers Index will be published.
Ethereum: BitMine acquires 102,259 ETH as price plunges 5%
Ethereum treasury company BitMine Immersion scaled up its digital asset stash last week after acquiring 102,259 ETH since its last update. The purchase has increased the company's holdings to 3.96 million ETH, worth about $11.82 billion. BitMine aims to accumulate 5% of ETH's circulating supply.
NFP preview: Complex data release will determine if Fed was right to cut rates
The long wait is over, and the Bureau of Labor Statistics in the US will release nonfarm payrolls reports for both November and October at 1330 GMT on Tuesday. The overall NFP figure for October is expected to be -10k, however, it is expected to be influenced by a massive 130k drop in federal department workers.
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