Articles tagged with "forex"

EUR/AUD and GBP/AUD are coiling near support, with recent correlations suggesting the Aussie’s strength is being driven more by rates, risk and metals than energy.

The US Dollar has rallied since last week’s rate hike and USD/JPY remains a massive driver across the USD complex.

Sterling has slipped below its 200-day moving average as downside momentum carries GBP/USD toward another major technical support zone.

Donald Trump’s speech at the UN seems to have poured cold waters on any hopes of a deal. Crude oil, the US dollar and bond yields all bounced back from their lows, causing fresh pressure on foreign currencies, European indices and to a lesser degree precious metals.

NZD/USD has become unusually sensitive to relative front-end rates, with the US two-year yield advantage now near historically extreme levels.

A new trading week is underway, and the Canadian dollar continues to show signs of weakening momentum. This can be seen in recent USD/CAD price action, with the pair gaining nearly 0.7% over the last four trading sessions.

Sr. Technical Strategist Michael Boutros highlights the levels that matter on the USD Majors, commodities, and equity indices charts this week.

The EUR/USD recovered from a modestly weaker start after after spending the last two days of last week in tight consolidation following a sizeable drop in response to a hawkish Fed rate hike in mid last week. The pair was held back as a result of Germany’s regional elections at the weekend, which made the nation’s political picture a little messier. But the downside has been limited owing to expectations of another ECB rate hike this year, and, more to the point, due to the fact oil prices have eased further at the start of this week.

A hawkish Fed, a dovish BOJ hike and a suspected rate check have left USD/JPY caught between powerful rates support and renewed intervention risk.

The Japanese yen continues to face challenging conditions in the short term. By the end of the week, USD/JPY had gained nearly 2.00% over the previous five trading sessions, highlighting ongoing weakness in the yen and showing that the U.S. dollar continues to gain ground.

The USD closed red last week despite a seemingly bullish backdrop but it made up for it this week, driven by a strong breakout in USD/JPY.

Heading into the week ahead, the macro calendar is quieter. But for as long oil remains supported, the US dollar forecast will remain bullish. Not only will oil prices be important for determining the direction for the dollar and USD/JPY, but bond yields too, and by extension, risk appetite.