Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs

$DXY, $EUR, $JPY, $GBP, $AUD

Commentary: Keeping the rates unchanged as expected the ECB pareed inflation expectations through Y 2019, driving the single currency lower. Sacked FBI Dir. Jamex Comey testimony was brushed off by the investors, boosting USD and UK is headed for a hung Parliament, weakening GBP. Overall, USD strengthened. PE

The US Dollar (.DXY) Index at 97.30 may rise to 97.60-80 near term. A break above 97.80 may confirm a near term reversal and open up 98.40 and above. The bias turns Bullish now with firm support at 96.50.

EUR (Euro) at 1.1195 weakened from the higher marks exactly as discussed over the past few days. Technically it may decline further to the support of 1.1125-15 before any bounce comes, but the German-US 2Yr (-2.08%) keeps the possibility of a recovery still open. Bias Bearish, but not with full conviction.

USD/JPY at 110.26 bounced in line with expectations, may rise to 111.20 but to negate the Southside risk a break above 111.70 must happen. Till then, the larger trend is South.

Sterling (GBP) 1.2746 took a hit from unexpected UK election results. With the initial shock digested, it may either fall in the range of 1.2700-1.2850 or continue the fall to 1.2600 right a way. It may take 1 more trading session which is probable.

AUD (Aussie) at 0.7532 remains indifferent to all global events and untouched by USD’s strength Friday. It may end the week in the range of 0.7500-0.7600.

Have a terrific weekend.

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