Major Currencies Overview
The Greenback was mostly in the red against its forex peers as traders continued to price in expectations of a Fed rate cut… or two!
Price action this week could be off to a slow start as top-tier U.S. reports, namely durable goods orders and advanced GDP, aren’t due until the latter half. Read more.
Weaker crude oil prices and a downbeat Canadian CPI report dragged the Loonie south for the most part, scoring wins only against the pound and euro.
There are no major reports lined up from the Canadian economy for the entire week, which could keep the currency sensitive to oil prices and overall sentiment. Read more.
EUR & CHF
The euro and franc carried on with their opposite directions for the week, as the former was bogged down by weak data while the latter took advantage of risk-off flows.
The upcoming ECB decision could shake things up for the shared currency this week, with the flash PMI readings due earlier on likely setting the tone. Read more.
Sterling chalked up yet another week in the red as Brexit developments reflected more political conflict and increased the possibility of a “no deal” scenario.
With no major reports on deck this week, traders could keep their attention fixed on more signs of trouble in Parliament as the U.K. PM race comes to a close. Read more.
Dovish commentary from the BOJ didn’t stop the yen from catching some gains for the week, although it ended up mixed as counter currency action came in play.
There’s no much in way of top-tier data lined up from the Japanese economy this time, which could leave the currency sensitive to sentiment. Read more.
Even with hints of another potential RBA rate cut, the Aussie managed to be one of the top-performing currencies for the week thanks to positive data from China.
The only event risk for the Aussie is RBA Governor Lowe’s speech on Thursday. Other than that, the currency could take cues from sentiment for the rest of the week. Read more.
The Kiwi held on to the top spot for another week as it banked on positive global developments that led risk appetite to improve mid-week.
New Zealand is set to release its trade balance this week and might show a smaller surplus. With that, risk sentiment could be the main driver of Kiwi price action again. Read more.
Charts to Watch:
After confirming a smaller double bottom breakout the other week, this pair seems to be on track towards forming an even larger one on its daily chart. Price has some room to climb before testing the neckline around the .6950 area before attempting a break higher and going for a reversal from the slide.
This pair has been forming higher lows and higher highs to trade inside an ascending channel on its 4-hour time frame. Price is down to the channel support and could be due for a bounce back to the top around the .9100 mark or at least until the mid-channel area of interest.
Stochastic is in the oversold region to show that sellers are exhausted and that buyers might be ready to return from here. However, a drop below support around the .8970 level could signal that a reversal from the climb might follow.
Here’s another potential channel bounce for y’all! On its 4-hour time frame, it can be seen that GBP/AUD is testing the bottom of the rising channel around the 1.7765 mark, with stochastic indicating oversold conditions to suggest that sellers are taking a break.
In that case, price could be ready to bounce back to the top around 1.9200 or at least until the middle of the channel at 1.8500. A break below the recent lows, on the other hand, could signal that a downtrend is due.