USD/JPY keeps the consolidative stance unchanged – UOB

Pablo Piovano FXStreet

USD/JPY is still forecast to maintain the consolidation between the 109.20/110.60 band in the next weeks, commented FX Strategists at UOB Group.

Key Quotes

24-hour view: “The sharp drop in USD to 109.57 came as a surprise (we were expecting sideway-trading). The rapid decline appears to be overdone and USD is unlikely to weaken much further. For today, USD is more likely to consolidate and trade between 109.50 and 110.10.”

Next 1-3 weeks: “On Tuesday (26 Jul, spot at 110.55), we highlighted that ‘upward momentum is beginning to improve but USD has close above 110.90 before a sustained advance can be expected’. We added, ‘the prospect for USD to close above 110.90 is not high for now but it would remain intact as long as USD does not move below 109.90 within these few days’. The build-up in momentum fizzled out quickly as USD dropped sharply to 109.57 yesterday (27 Jul). The recent price actions have resulted in a mixed outlook and USD could trade within a 109.20/110.60 range 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.

EUR/USD clings to daily gains, still below 1.1900

EUR/USD manages to reverse two daily pullbacks in a row and advances modestly on Thursday, hovering around the 1.1880 zone amid the inconclusive price action around the US Dollar. Meanwhile, weekly Initial Claims rose more than expected last week, while attention is expected to shift to the upcoming US CPI data on Friday.

GBP/USD picks up pace, hits 1.3640

GBP/USD trades with modest gains around 1.3640 so far on Thursday. Indeed, Cable looks to leave behind the weakness seen in the first half of the week in a context of an equally erratic performance in the Greenback and disappoting UK data releases.

Gold stays offered below $5,100

Gold keeps the choppy trade well in place on Thursday, navigating the area below the $5,100 mark per troy ounce amid the lack of clear direction in the Greenback, declining US Treasury yields across the curve and caution ahead of Friday’s publication of US CPI.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.