On the back of Dollar strength, the USDJPY is positioned for a rally to the 116.00 level that may extend to 117.00 should the market have any reason to expect an optimistic December Fed Dot Plot. Currently in correction, the USDJPY is likely to test 112.00 support level ahead of the next impulse wave.
The US Dollar is currently correcting from the rally caused by market discounting of the December Rate Hike, and is likely to test the 12,000 support level (FXCM Dow Jones US Dollar Index) before forming the next impulse wave upwards. Causing the current correction is a mixture of risk sentiment as Pres. Trump tours and meets with leaders of Asian Nations, the...
Yen strength ahead of BoJ policy meeting this thursday in which an upwards revision to the BoJ's economic outlook is expected.
This will follow suit given the hawkishness that has recently started spreading in the central banking community.
Outlook on USDJPY is bearish to 110.15 level. Possible breakout to 2016 prices a highly probable scenario, should USDJPY...
With Euro and Pound corrections underway the EURGBP is set to narrow into consolidation between 0.8600 - 0.8700 with a target of 0.8700 at the FOMC meeting. Technically the EURGBP is retracing from a trendline rejection at the 0.8750 high following the last two highs since January. Medium term lower target of 0.8500 should the UK terror threat abate and the...
A hawkish BoC has helped the CAD to recover grounds amidst favorable economic conditions, however pressure on oil prices following disappointment in OPEC production cut extension and widening IR Differential with the states will keep the pressure on the CAD for now. Key resistance levels at 1.3730
Yen continues to prove its strength as political risks drives investments into Japanese bonds and may outperform the US-Dollar in the short term in the build up to the FOMC. Should the Fed raise rates, the yen could be subjected to selling pressure as the rate differential widens. Abatement of political risks needed to curb Yen strength. Upcoming support level at 109.35
Following strong job growth during the 1st quarter the Aussie dollar proved resilient following China's rating downgrade amidst slumping commodity prices and is set to correct to the downside to the 0.7400 level in the build up to the June FOMC. With this level in mind the AUD is set to outperform the Euro, Pound and other comm dolls.
Along with US-Dollar strength and the downwards revision of 1st quarter UK GDP data, ongoing terror threats in the UK amidst political uncertainty with the upcoming snap elections in which May seems to be losing grounds; GBPUSD is set to correct to the downside with a minimal low of 1.2500.
Profit taking following a strong Euro rally as the market factored in Euro Zone resilience; along with a stronger US-DOLLAR will see the EURUSD correct to the downside in the short term with key support at 1.0900 levels.
Overall Euro strength remains on deck in the medium term as the ECB is looking forward to possible tapering, along with a US-Dollar low which...
Fundamentally the Dollar is set to rally to 12,240 - 12,250 following an upward revision in 1st quarter GDP data and the build-up to the June FOMC meeting in which the Fed is expected to raise rates by 25bp in line with the three rate hike forecast since December.
The final hurdle to cross is the June NFP due this coming Friday - in which only a strongly...
Indecisiveness in ending QE stimulus by BoJ and talks of further rate decreases has led the Yen weakening. Amidst May month Greenback weakness it is anticipated that the USDJPY can test 110.00 support before the Fed rate hike in June
Following strong Pound gains after May called for snap elections that will add momentum to the current stance for Brexit negotiations, UK treasury yields have been under pressure that will subtract from the any further GBPUSD gains during May month. One last rally anticipated to the 1.3100 level
Expected CAD gains on profit taking and improvements in Canadian labor data following severe pressure from weakening oil prices and threats from Trump to impose trade measures against Canada. Support anticipated at 1.3500 - 1.3550 during May
Mixed April labor data; strong job addition with a weakening unemployment rate as well as weakening commodity prices will offer relative little momentum to an AUDUSD rally during May month. Key resistance anticipated at 0.7500 - 0.7550
US Labor data showing signs of improvement in terms of wage growth and a low unemployment rate following the seasonal factors that caused weak labor data in the first quarter. As this upbeat data factors into retail spending and investments the greenback will find support especially with an anticipated rate hike in June. Key support anticipated at 12,050 - 12,150 levels.