Major Currencies Overview
It was a pretty exciting election week for the Greenback, which edged generally higher after the FOMC statement supported hopes for a December rate hike.
This week might be a bit more quiet than usual as the retail sales report is the only major catalyst scheduled. Of course swings in risk appetite could still be a driving factor. Read more.
The Canadian dollar wound up as the biggest loser of the week as bearish factors kept coming in all directions for crude oil.
There are no major reports lined up from Canada this week, which suggests that sentiment and Black Crack action could continue to push the correlated currency around. Read more.
EUR & CHF
The shared currency found itself on the losers’ bench mostly due to dollar strength last week, and the franc agreed that misery loves company.
There’s not much in the way of catalysts from the euro zone and Switzerland this week, so these European currencies might take cues from their counterparts or overall sentiment. Read more.
Pound bulls kept charging for the most part of the previous week, although wishful thinking for a Brexit deal seemed to fade towards the end.
Sterling is off to a rough start as it gapped down over the weekend on more signs of trouble within the U.K. ranks and weakening odds of striking an agreement with the EU. Read more.
The yen had another losing week as risk appetite and dollar strength were major themes. Higher bond yields also sapped demand for the lower-yielding Japanese currency.
The same could be the case this time since there are no top-tier catalysts lined up from Japan. Better watch out for any significant changes in sentiment then! Read more.
Another round of risk-taking and upbeat data from China shored up the Australian currency as investors projected sustained demand for commodities. Read more.
The higher-yielding Kiwi scored another strong win for the week as it took advantage of traders’ appetite for risk. Strong NZ jobs data also contributed gains.
If risk-taking keeps up, the lack of top-tier data might not be enough to stop the Kiwi from heading further north. A turnaround in sentiment, on the other hand, could force it to retreat. Read more.
Charts to Watch:
After breaking out of its descending channel and signaling that an uptrend is in the works, NZD/USD looks like it could use a quick pullback before heading any higher. The Fib tool shows that the 38.2% level lines up with an area of interest while the 61.8% Fib is closer to the broken channel top and the .6600 handle.
Thanks to that weekend gap, the resistance on the rising channel of GBP/CAD is holding as a ceiling once more. Stochastic is moving down, after all, confirming that sellers are regaining control.
Price could set its sights on the bottom around the 1.6650 minor psychological mark or at least until the mid-channel area of interest at the 1.6950 area from here. They say that all gaps get filled, though, so you could still wait for a better price to enter.
This pair is showing a neat break-and-retest setup on the daily time frame, after previously crashing below a symmetrical triangle bottom, and price is already bouncing off the area of interest.
At the same time, stochastic has hit overbought territory and could be due to turn lower soon to confirm a return in selling pressure. Once that happens, AUD/CHF could resume its slide and revisit the swing low.