Partner Center Find a Broker

No top-tier reports scheduled in early London trading, but major U.S. data releases might attract pre-event positioning among dollar bulls and bears.

Currency Snapshot:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Fresh Market Headlines & Economic Data:

Upcoming Potential Catalysts on the Forex Calendar:

  • Spain’s flash CPI at 8:00 am GMT
  • Euro Zone’s economic and consumer confidence at 10:00 am GMT
  • U.K. MPC member John Cunliffe to talk monetary policy in London at 10:30 am GMT
  • U.S. second GDP reading at 1:30 pm GMT
  • U.S. durable goods orders at 1:30 pm GMT
  • Canada’s current account at 1:30 pm GMT

What to Watch: USD/JPY

USD/JPY 1-hour Forex Chart
USD/JPY 1-hour Forex Chart

The Donald may have tried to play down Coronavirus fears in a speech earlier today but a lack of major data releases left traders worrying over the potential pandemic’s impact on global economic activity.

I don’t see top-tier reports scheduled in early London trading so it’s likely that traders will extend economic themes (read: risk aversion) from the previous trading sessions. The tides could turn during the U.S. session, however, when Uncle Sam prints its second GDP reading, durable goods orders, and new home sales numbers.

USD/JPY, in particular, looks ready for a mid-week bounce as it nears the 109.75 – 110.00 previous resistance and 61.8% Fib retracement level. It also doesn’t hurt that MarketMilk is still on the “bullish” side with the longer-term SMAs even as it’s “bearish” on shorter-term daily SMAs.

Dollar bulls can wait to see how London session traders react to a potential bounce around 110.00. A long trade at the area could yield decent pips with 111.25 or even 112.00 as profit targets.

Meanwhile, dollar bears can also wait for a break below the Fib levels and the 109.50 zone in case USD/JPY’s downswing extends all the way to 108.50 or 108.00 previous support levels.