Major Currencies Overview
The Greenback chalked up a mixed performance for the previous week as it tossed and turned to market sentiment, the FOMC decision, and the NFP release. Phew!
Inflation reports are lined up in the second half of the week, along with a speech by Fed head Powell. Do keep tabs on trade tensions, too! Read more.
The Loonie also had a mixed run as it was pulled in different directions by crude oil action, comments from BOC head Poloz, and good ol’ counter currency moves.
Canada has its Ivey PMI, trade balance, and jobs data on this week’s docket so it might prove to be an eventful and volatile one. Read more.
EUR & CHF
The shared currency saw almost all green, except against the yen and pound. Meanwhile, the franc took advantage of risk aversion but still showed weakness on downbeat data.
Another set of low-tier reports are due from both the euro zone and Switzerland this week, although the ECB minutes and geopolitical updates might be worth keeping tabs on. Read more.
Sterling chalked up a couple of big rallies throughout the week, likely spurred by improving Brexit developments and a somewhat positive BOE Super Thursday.
The monthly and quarterly GDP readings should take the limelight for pound pairs this week, especially if the results come in way stronger or weaker than expected. Read more.
Week-long holiday, who cares? Yen bulls were charging for the most part of the previous week thanks to risk-off vibes.
The minutes of the latest BOJ meeting and the Summary of Opinions report are due this week, along with a bulk of low-tier figures. Can sentiment stay in play? Read more.
‘Twas another week in the red for the Aussie as risk aversion extended its stay on account of downbeat manufacturing data from China.
This time, trade tensions seem to be the theme to start the week as the U.S. announced another round of tariffs. Still, the Land Down Under’s retail sales and trade balance could change the game, along with the RBA decision. Read more.
The Kiwi had another one of its tougher weeks as it joined the Aussie in its misery. It didn’t help that manufacturing and jobs figures from New Zealand turned out weak as well.
The RBNZ has its monetary policy decision coming up and there are strong expectations that the central bank would cut rates. Do keep tabs on trade tensions between the U.S. and China, too! Read more.
Charts to Watch:
This pair was previously consolidating inside a descending triangle with its lower highs and support around 144.00. Price just busted through the top to indicate that bulls have taken the upper hand.
Stochastic is pointing up to show that there’s still some buying energy left, possibly enough to take Guppy up by the same height as the chart formation. However, the oscillator is also closing in on the overbought zone to indicate exhaustion and a possible pullback.
This pair is in the early stages of forming a triangle pattern on its 4-hour chart as it made higher lows and lower highs. Price is currently testing support and oversold stochastic appears to be signaling that a bounce is due.
A break below the floor around the 82.75 level could be enough to indicate that sellers are taking over and that a drop of the same size as the chart pattern might follow.
Here’s one for the longer-term traders out there! Cable might be forming a major reversal pattern on its daily time frame as it completes the second shoulder of its inverse head and shoulders.
Price might be on track to test the neckline around 1.3400, with a break higher setting of a climb that could be the same size as the reversal formation. Stochastic is moving north so price might follow suit while buyers are in control.