Major Currencies Overview
It was nothing but a sea of green for the U.S. dollar last week, thanks to positive developments in trade talks and strong data from Uncle Sam.
Inflation and consumer spending data are up for release this week, but the focus could still stay on U.S.-China trade negotiations and overall sentiment. Read more.
The Loonie also came out as net winner for the week, even though it had to give up some gains when Canadian data disappointed.
There are no major reports lined up from Canada this week, except a couple of speeches from BOC officials later on, so crude oil and market sentiment could push CAD pairs around. Read more.
EUR & CHF
The euro and franc found themselves in the red as risk-taking was in play from positive trade developments. Downbeat euro zone data didn’t help the shared currency either.
Growth figures are lined up from Germany and the entire region this week, so this could provide some clues on what the ECB’s next moves might be. Read more.
Sterling had a relatively quiet week since there weren’t much Brexit updates pushing the currency around, and traders are just waiting to see how the elections would turn out.
The focus could shift back to economic data this week, with the CPI, retail sales, and jobs figures all up for release. Read more.
The yen wound up as a net loser for the week as the improvement in risk sentiment dragged lower-yielding currencies south.
Japan’s preliminary GDP and a bunch of low-tier reports are up for release this week, but it’s likely that risk sentiment could also be a big factor. Read more.
The Aussie held on to its strong standing from the previous week as risk appetite extended its stay and a few data points from the Land Down Under came out positive.
China’s data dump and Australia’s jobs report are the numbers to watch this week, with another strong set likely to keep the currency in the green for the third week running. Read more.
Even with risk-taking in play, the Kiwi found itself in a sea of red as downbeat jobs data upped the odds that the RBNZ might ease again.
The central bank will be announcing their monetary policy decision this week, and a dovish tone or an actual cut could weigh the currency down once more. Read more.
Charts to Watch:
Time for a retest? Cable recently busted through a descending trend line visible on its daily time frame and looks due for a pullback to the broken resistance.
Stochastic is still pointing down to show that sellers have the upper hand while the 100 SMA is below the 200 SMA as well. This could keep the correction going until the 38.2% Fibonacci level close to the broken trend line around 1.2600.
This pair has formed higher highs and higher lows to consolidate inside a rising wedge pattern seen on its 4-hour time frame. USD/JPY is currently testing resistance while stochastic is moving south, so price could follow suit and test the wedge support around 108.25.
This happens to line up with the 200 SMA dynamic inflection point, which is below the 100 SMA to indicate that support is more likely to hold than to break.
Stochastic is already moving north to indicate that buyers are taking over and could take the pair back up to the channel top at around .6975 or at least until the mid-channel area of interest. However, the 100 SMA just crossed below the 200 SMA to indicate that support is more likely to break than to hold.