EUR/USD keeps the range bound theme unchanged – UOB

Pablo Piovano FXStreet

FX Strategists at UOB Group now see EUR/USD navigating within the 1.0990-1.1170 range for the time being.

Key Quotes

24-hour view: “We highlighted yesterday that the ‘advance in EUR could extend above 1.1190 first before easing’. EUR subsequently rose to 1.1184 before staging a surprisingly sharp decline (low has been 1.1059). While the rapid drop appears to be running ahead of itself, EUR could decline further to 1.1035. The major support at 1.0990 is unlikely to come under threat. On the upside, a breach of 1.1125 (minor resistance is at 1.1100) would indicate the current downward pressure has eased.”

Next 1-3 weeks: “Two days ago (30 Mar, spot at 1.1085) we highlighted that the risk for EUR has shifted to the upside. We added, a clear break of 1.1140 could lead to EUR strengthening to 1.1190. As EUR rose, we highlighted yesterday (31 Mar, spot at 1.1155) that ‘if EUR breaks 1.1190, the chance for further EUR strength to 1.1240 would increase’. EUR did not break 1.1190 as it rose to 1.1184 before falling sharply to a low of 1.1059. While our ‘strong support’ level at 1.1055 is not breached, upward momentum has more or less dissipated. EUR appears to have moved into a consolidation phase and is likely to trade between 1.0990 and 1.1170 for now.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

USD/JPY eyes August swing low, near 155.20 ahead of US NFP

USD/JPY retests the August monthly swing low during the Asian session on Friday as a more hawkish repricing of BoJ rate-hike bets and a suspected intervention continue to underpin the Japanese Yen. Meanwhile, the US Dollar is seen consolidating the previous day's heavy losses amid soft US bond yields, further weighing on the currency pair as traders keenly await the US NFP report.

AUD/USD consolidates above 0.7200; US NFP awaited

AUD/USD holds steady above 0.7200, near its highest level since mid-May, as bulls await the US NFP report for more cues on the Fed's policy path before placing fresh bets. Meanwhile, the recent decline in US bond yields keeps the US Dollar depressed near its lowest level in over a week and acts as a tailwind for the Aussie amid the RBA's hawkish tilt.

Gold tumbles as blockbuster US NFP lift US Dollar, Treasury yields

Gold (XAU/USD) falls sharply on Friday, snapping a two-day recovery after the US Nonfarm Payrolls (NFP) report surprised strongly to the upside. The metal briefly climbed above $4,500 on Thursday, gaining nearly 2%, but has since erased a large part of that advance.

Crypto’s $638 million buyback boom may not be as bullish as it looks

Decentralized Finance (DeFi) protocols reportedly spent $638 million to buy back their native tokens in August, up 17% from a year earlier. On the surface, the buyback trend suggests the cryptocurrency industry is maturing fast, adopting one of Wall Street’s oldest tools to bolster valuations and distribute revenue. The headline becomes less impressive once the number is opened up.

Why hawkish Bank of Japan expectations aren't enough to sustain the Japanese Yen rally

The Japanese Yen (JPY) experienced a sudden burst higher after falling back below the 160.00 psychological mark against the US Dollar (USD) earlier this week amid a more hawkish repricing of Bank of Japan (BoJ) rate hike expectations.

Diesel’s record $100 warning: The oil shock hiding in plain sight

The Oil market may look calmer than it did a few months ago, but diesel is sending a very different message. The US diesel crack spread, the premium of ultra-low sulphur diesel futures over WTI, recently surged above $100 per barrel for the first time, reaching an intraday record of just over $102.00.