- EUR/JPY travelled higher as risk appetite improved a touch.
- EUR/USD rose from 1.1000 to 1.1075 while USD/JPY bopped about in the low 108s.
EUR/JPY travelled higher as risk appetite improved a touch and the Dollar sank, supporting the euro while the Yen also suffered supply. EUR/JPY is currently trading at 119.68 and is flat on the day having climbed from a low of 118.69.
Overnight, EUR/USD rose from 1.1000 to 1.1075 while USD/JPY bopped about in the low 108s, having touched 108.37 in Asian trade, a fresh high since the 1 August Trump-China tariff tweet. As for data, the ZEW survey of Germany investor sentiment remained deeply negative in September, deteriorating further than forecast to -19.9, a low since May 2010, but the expectations index improved sharply, to -22.5 from -44.1.
Risk sentiment was on the edge but improved to a degree
Meanwhile, risk sentiment was on a the edge but improved to a degree, helping to support the cross. In Europe, the DAX fell just 0.1% but WTI eased to USD59.2bbl and later in the day, with respect to the Saudi risk, crude markets fell sharply as the Saudi energy minister was quoted as saying that “oil supply is fully back online”.
Looking ahead, we have the Federal Open Market Committee meeting, although markets are fully priced for the decision where the Fed is expected to cut its Federal Funds rate 25bp to 1.75-2.0%.
"Along with the usual statement, this meeting will provide quarterly forecasts of GDP, inflation, the unemployment rate and the “dots” of FOMC members’ projection of the funds rate as at end-2019, 2020, 2021 and “longer term.” We will also hear from Fed chair Powell in his press conference,"
analysts at Westpac explained.
EUR/JPY levels
Analysts at Commerzbank note that EUR/JPY is expected to short-term consolidate further below the July low at 120.06:
"Above it resistance can be seen between the June lows at 120.79/96 as well as at the 121.38 late July high. Minor support comes in at the 118.60 September 5 high. Support below the 117.55/52 August 12 and September 12 lows can be seen at the 116.58/115.87 recent lows."
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD fluctuates in daily range above 1.0600
EUR/USD struggles to gather directional momentum and continues to fluctuate above 1.0600 on Tuesday. The modest improvement seen in risk mood limits the US Dollar's gains as investors await Fed Chairman Jerome Powell's speech.
GBP/USD stabilizes near 1.2450 ahead of Powell speech
GBP/USD holds steady at around 1.2450 after recovering from the multi-month low it touched near 1.2400 in the European morning. The USD struggles to gather strength after disappointing housing data. Market focus shifts to Fed Chairman Powell's appearance.
Gold aiming to re-conquer the $2,400 level
Gold stages a correction on Tuesday and fluctuates in negative territory near $2,370 following Monday's upsurge. The benchmark 10-year US Treasury bond yield continues to push higher above 4.6% and makes it difficult for XAU/USD to gain traction.
XRP struggles below $0.50 resistance as SEC vs. Ripple lawsuit likely to enter final pretrial conference
XRP is struggling with resistance at $0.50 as Ripple and the US Securities and Exchange Commission (SEC) are gearing up for the final pretrial conference on Tuesday at a New York court.
US outperformance continues
The economic divergence between the US and the rest of the world has become increasingly pronounced. The latest US inflation prints highlight that underlying inflation pressures seemingly remain stickier than in most other parts of the world.