The dollar is catching a bit of a bid in early trading and this could put some pressure on EUR/USD in the session ahead. This might suggest a dip to retest the bottom of the range.
Currently, the pair appears to be ranging between 1.1020 and 1.1060. The latter was tested at the European open and the pair was last seen around the mid-point of the range.
The USD / TRY, which fell to 5,6460 in the past week, closed the week at 5,7150 and experienced a decline last week after a 3-week rise. The exchange rate started the new week with an increase and rose 0.55% to 5.7440 in the first half of the day.
There has been a bit of a divergence in the yields play back in favour of the aussie as of late, which has not been reflected by AUD/USD.
I reckon if the currency pair can chase a move towards the 8 August high of 0.6822 and break above that, we could potentially see a more meaningful breakout potentially back towards 0.7000 if the yields spread allows for it.
The USD/CHF pair dropped to fresh session lows in the last hour, with bears now eyeing a follow-through weakness below the 0.9900 round figure mark.
The pair failed to capitalize on its early uptick to one-month tops and was being weighed down by reviving demand for traditional safe-haven currencies - including the Swiss Franc - amid a slight deterioration in...
Dropping below 1.1000 has proved detrimental for EUR/USD – which extends its downfall and fails at every recovery attempt. Some thought that the breach of the round number late on Friday was only an end-of-month event – but they were proved wrong. The world's most popular currency pair hit 1.0930 – the lowest since May 2017.
Both economic and geopolitical fears have been weighing on the Euro (EUR) and Australian Dollar (AUD) this week, and as a result the Euro to Australian Dollar (EUR/AUD) exchange rate has seen mixed, narrow movement.
As German recession fears flared up last week, EUR/AUD tumbled back from near its best levels all year, sliding from the level of 1.6500 to 1.6363.
Oil has been supported this week by strong compliance in the so-called OPEC+ pact on output restraint, a large draw in U.S. crude inventories and increasing tensions between Washington and Tehran. However, WTI is still down 15% from April highs. The ongoing trade conflict raises concerns that the negative economic impact will damage global demand for crude.
Last week, GBP/JPY corrected higher creating a higher high at 130.70 – its highest level in three weeks however, the pair closed on Friday with a Doji pattern reflecting the market’s indecision at this stage.
The driver for the trade was for the interest rate differential between the two currencies to widen with Canada hiking interest rates earlier than New Zealand. While the differential between the two has widen, this is more to do with New Zealand cutting rates before Canada – so the right reason but the wrong way for it to happen!!