Major Currencies Overview
‘Twas yet another positive week for the Greenback despite conflicting trade rhetoric, but it stepped back against the Loonie and the euro.
This NFP week could bring the focus back to U.S. fundamentals and tightening expectations, especially since the FOMC minutes are also up for release. Read more.
Finally some green for the Loonie! After consecutive losing weeks, the oil-related currency managed to outpace all of its peers thanks to some upbeat remarks from BOC head Poloz.
The Canadian jobs report might be the main event for the Loonie this week ahead of the BOC decision later this month. Read more.
EUR & CHF
The euro also sat in the winners’ circle last week thanks to some positive inflation figures and the migration deal reached during the EU Summit.
There’s not much in the way of top-tier catalysts from both the EU and Switzerland this week, so this European tandem could take their cues from their counterparts. Read more.
A bit of not-so-hawkish commentary from new BOE member Haskel dampened the pound’s hopes of seeing a hike soon, and Brexit jitters didn’t help.
Business PMI readings are lined up throughout the week and this should help traders gauge whether or not the central bank could be ready to tighten in their next meeting. Read more.
Safe-haven flows on trade war troubles paved the way for another week in gains for the lower-yielding yen.
In the absence of any major catalysts from the Japanese economy over the next few days, yen pairs could continue to move to the tune of bond yields, sentiment, and dollar demand. Read more.
Devaluation moves from China weighed a bit on the Aussie last week, although price action seemed to be torn between following gold prices or market sentiment.
The RBA decision could steal the show, though, as the central bank turned a tad more hawkish last time. How will the recent trade uncertainties be factored in? Read more.
Much like its neighbor, the Aussie, the Kiwi also had a rough week on another slew of trade troubles. Heck, the Kiwi wound up as the biggest loser then!
There’s not much in the way of top-tier data from New Zealand, which leaves risk sentiment as the likely driver of Kiwi movements again this time. Read more.
Charts to Watch:
Another round of trade war troubles could mean more losses for the Kiwi this week, especially since NZD/USD just tumbled below the longer-term support at .6850. The pair could still pull up for a retest of the broken support right at the 61.8% Fib level while stochastic is heading north.
If you’re bullish on the comdolls, though, you might find this range support bounce on AUD/JPY to your liking. A double bottom has formed right on the floor and price has broken past the neckline to signal that a rally may take place, possibly taking it up to the top of the range or the area of interest around 82.50.
Here’s one for the trend players out there! USD/CAD continues to climb higher but might be due for another correction to the rising trend line and area of interest. This is somewhere between the 50% to 61.8% Fibonacci retracement levels, which might hold and push price back up to the swing high and beyond.