Major Currencies Overview
The Greenback chalked up another mixed performance as it was pulled in opposite directions by resurfacing trade tensions and stronger than expected inflation figures.
Apart from retail sales data, only a few medium-tier reports are lined up from Uncle Sam, leaving the dollar extra sensitive to trade-related updates and overall sentiment. Read more.
The Loonie was a net loser for the week as trade troubles weighed heavily on risk appetite and crude oil. Not even much stronger than expected Canadian jobs data was able to save the day!
Canada’s inflation reports are up for release this time, and BOC head honcho Poloz has a speech coming up. Read more.
EUR & CHF
The euro and the franc were able to take advantage of risk-off flows last week, scoring some gains off dollar weakness as well.
Another set of medium-tier leading indicators are lined up from the euro zone while Switzerland has no major catalysts on deck. This could leave both currencies sensitive to sentiment once more! Read more.
Sterling found itself at the bottom of the forex pile in the previous week as the lack of Brexit progress took center stage.
This time, the U.K. jobs report is lined up and might be a bright spot for pound pairs if employment growth and wages tick higher again. Read more.
The yen climbed to the very top spot against its rivals, thanks to risk-off flows and anti-dollar price action stemming from trade war concerns.
Only low-tier reports are due from Japan this week, which could keep yen at a good spot to score another round of wins if trade tensions keep escalating. Read more.
The RBA statement gave the Aussie a boost since the central bank refrained from cutting, but the currency let go of those gains and more when trade tensions flared.
Australia has its jobs report coming up this week, but traders might keep their attention on China’s data dump and more developments on the trade war with the U.S. Read more.
The Kiwi didn’t have much to hold on to last week, as the RBNZ cut interest rates as expected while trade tensions dragged risk appetite down.
Only the Business NZ manufacturing index is due from New Zealand this week, likely keeping overall market sentiment influenced by trade updates as the main driving factor. Read more.
Charts to Watch:
This range is still intact, fellas! Price is halfway through on its climb to the very top around the .8675 level and might be due for another bounce. A break past the top, however, could spur a climb that’s the same size as the rectangle pattern.
Stochastic is starting to edge down from the overbought zone to signal a return in selling pressure. In that case, the pair could make its way back down to the .8500 major psychological support once more.
This pair is in selloff mode as it forms a descending channel on the 4-hour time frame. Price just bounced off the bottom and appears to be in the middle of a correction.
Using the Fib tool on the latest drop shows that the 50% to 61.8% levels span the channel top around 82.00 to 82.25. Stochastic is already heading south, though, so CAD/JPY might follow suit and head back to the swing low.
Here’s one for the longer-term traders out there! USD/CHF is trending higher inside a rising channel on the daily time frame and is also in the middle of a pullback.
Price is testing the 38.2% level already but might be due for a deeper correction to the bottom of the channel near the 61.8% Fib. However, stochastic is already indicating oversold conditions or exhaustion among sellers and might be due to turn higher soon.