Forex Morning Briefing, Major Pairs

Forex Morning Briefing, Major Pairs


Commentary: All eyes are on the 3 central bank meetings this week: FOMC on 14th, BOE on the 15th and BOJ on the 16th, among which BOE and BOJ are expected to keep the rates unchanged, but the Fed could hike. PE

The US Dollar (.DXY) Index at 97.22 is in pause mode after the rally from 96.50 to 97.30 last week, it may resume the rally for 97.70-80 after the FOMC report on Wednesday. A clear break above 97.80 may open the way back to 100.00.

EUR (Euro) at 1.1191 is weak and may test the 1st support at 1.1140-00 near term. If 1.1100 fails to hold near term, the Southside risk for the single currency may increase considerably.

Risk aversion is driving money into JPY and pushing USD/JPY to 109.98 an lower. If the FOMC policy decision looks favorable to the market Wednesday, then USD may strengthen and drive USD/JPY up, but it needs a break above 110.60 to signal of an upside reversal.

Sterling (GBP) at 1.2646 is falling to 1.2600, it may test the long term support at 1.2560-40 by the end of the week if the current Bearish momentum persists. Some Short covering can be expected near 1.2560-40 if Cable declines that far, the trend is South to 1.2800 and lower.

AUD (Aussie) at 0.7558 stalled near last week’s high at 0.7567 and may rise to 0.7590-0.7610, but it may be the time for caution as a short term correction can be expected in the area of 0.7570-0.7610.

Stay tuned…

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