Monday’s Currency Briefing
$USDJPY, $EURUSD, $.DXY
Major currencies are trading strong Vs the Dollar and could remain so near term.
US Dollar (.DXY) Index (95.63) is down sharply and could come down towards 94.50 in the near term before bouncing back again.
USDJPY: Japanese Yen (102.57) has fallen sharply as the BOJ meeting came in exactly validating the resistance on the weekly chart. Immediate support is seen near 101 which is likely to hold in the near term. But if the currency pair bounces towards 103.48 from current marks then the lower 101 may not be tested just now.
EURUSD: Euro (1.117) has strengthened quickly, surprising the currency markets. Euro has tested the 1.12 mark on the Northside before seeing a fall to 1.08, contrary to expectations. Need to see if it is able to break 1.12 to head higher towards 1.130-1.135 or come back to test previous marks at 1.11-1.10.
GBP (1.3252) is inching upwards in a slow and steady movement and could test 1.34 on the Northside in the near term.
Aussie (AUD) (0.7605) moved up sharply above expected 0.76. An extension towards 0.77 is possible in the near term before we see a short correction back towards 0.75.
Dollar-Rupee (67.00) came down sharply Friday and could continue to move lower towards 66.80-66.70 and maybe lower in the coming sessions. Note that the NDF offshore rate quotes 66.72, indicating a sharp gap-down opening in the OTC market Monday.
Have a terrific week.