Forex Morning Briefing
Commentary: Euro weaned by Draghi’s Dovishness. PE
EUR(Eur0) at 1.2320, notably Draghi’s Dovish comments at the 8 March press conference and the downward revision of forecasted inflation in Y 2019 caused the single currency to weaken below 1.24 and marking a low at 1.2273 Friday. Seeing some chance of a down-move to support 1.225 and then bounce to 1.25-1.26.
The US Dollar (.DXY) Index at 90.023 bounced from support at 89.5 last week after the ECB chief’s Dovish PC comments. We were expecting the Bank of Japan’s meeting Friday to impact USD, but, the BOJ maintained status quo and .DXY has not seen any significant movement since, and it has 1st resistance at 90.5. If breached, there is higher resistance near 91. In case of a dip from here, the next downside target is 89.75..
USD/JPY at 106.61 looks to be respecting 1st resistance near 107. The Bank of Japan meeting last Friday maintained status quo and did not cause any significant impact on JPY’s strength, USD/JPY this week could move down to 105.5, which is Key support, a clear break there would lead to medium term Bearishness.
UER/JPY at 131.33 looks to move to support near 129.75-129.50 this week. If USD/JPY, and EUR test supports near 105.5 and 1.225, the corresponding rate for EUR/JPY would be 129.23.
Sterling (GBP) at 1.3857 has held at 1.38 and it is now seeing a move to 1.395.
Have a terrific week
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