Forex Morning Briefing
$DXY, $EUR, $GBP, $JPY, $AUD
Commentary: Nothing new. PE
US Dollar (.DXY) Index at 94.38 fell Monday and is testing support at 94.30-35. Expecting this support to hold and for the FOMC meet to strengthen .DXY. If that happens a ride to 95.0-95.5 is likely, and 95.5-96.0 is important resistance, and a clear break above that is iffy. If it happens, may make .DXY Bullish into October.
EUR (Euro) at 1.1707 moved up Monday to 1.1720. It could test resistance at 1.174 Tuesday, then again dip. The expectation is been that the BoJ and FOMC meets this week could weaken the single currency, if there is a Hawkish tilt to both policy statements. If that occurs, support at 1.1625-1.1600 could be tested this week. A clear break of this support in here is on the cards.
USD/JPY at 110.99 is trading quietly at 111, the next resistance is at 112.5. There is support at 110.5 and 110.0. If the BoJ initiates or indicates any tightening to its monetary policy, could see JPY strengthen to 110 this week.
EUR/JPY at 129.93 could dip below support today, as the EUR/USD is expected to move lower USD/JPY could dip too. A dip to 1.16 and 110 for EUR/USD and USD/JPY imply a target near 127.5 for the pair. Will wait for confirmation.
Sterling (GBP) at 1.3120 the BoE meeting Thursday is expected to see a rate hike that looks factored in by the markets. The trend for GBP looks Bearish. A clear break below the support marks could happen in spite of the BOE policy release.