Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs

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

Commentary: While keeping the rates unchanged as expected, ECB trimmed inflation expectations through Y 2019, pushing the single currency lower. Sacked former FBI Director James Comey testament was brushed off by the investors, boosting USD and UK is headed for a hung Parliament, weakening the GBP. Overall, USD strength is up. PE

The US Dollar (.DXY) Index at 97.30 reversed, and it may rise to 97.60-80 in here. A break above 97.80 is needed to confirm a near term reversal and open up 98.40 and above. The bias turned Bullish now with support at 96.50 holding.

EUR (Euro) at 1.1195 weakened exactly as discussed over the last few days. Technically it may decline to support at 1.1125-15 before any bounce comes, but the German-US 2Yr (-2.08%) keeps the possibility of a recovery still open. Bias Bearish.

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

Sterling (GBP) at 1.2746 took a major hit from the unexpected UK election results last Thursday. With the initial shock digested, it may either trade in the range of 1.2700-1.2850 for a few sessions or continue the decline towards 1.2600 right away. We wait to see the path.

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

Have a terrific week.

The following two tabs change content below.
HEFFX has become one of Asia’s leading financial services companies with interests in Publishing, Private Equity, Capital Markets, Mining, Retail, Transport and Agriculture that span every continent of the world. Our clearing partners have unprecedented experience in Equities, Options, Forex and Commodities brokering, banking, physical metals dealing, floor brokering and trading.