Forex Morning Briefing
Commentary: The CPI negates quicker rate hikes by the Fed this year, lead to USD weakening Vs majors peers.PE
The US Dollar (.DXY) Index at 89.58 has broken 1st support at 89.75 and might now move further down to 89.2-89.0. This is Key support, a break there leads to medium term Bearishness.
Note: The movement in the next few sessions could depend on US Retail Sales data Wednesday, EU CPI data Friday, US Housing Starts data, and US Industrial Production data Friday.
Note: The EU CPI data release Friday may be Key, a higher than expected figure would be Bullish.
USD/JPY at 106.44 saw a high 107.29 Tuesday after news of a political scandal involving the Prime Minister broke out, lowering confidence in JPY. But, global USD weakness helped in bring USD/JPY below 106.5. May now see a resumption to Key support 105.5-105.0 soon, a break there confirms medium term Bearishness.
EUR/JPY at 132.05 moved by 132 as the EUR strengthened Vs USD. If the single currency strength pauses while the JPY regains strength Vs USD, we could see the pair resume its move to 130-129.
Sterling (GBP) at 1.3986 breached 1.395 Tuesday. There is higher resistance at 1.4 which should lead to a dip in GBP yet this week or early next.