Forex Analysis

The Global Macro Pulse

The USD drifted weaker in pre-Jackson Hole profit taking. AUDUSD has risen to 0.9313,

Focus will be on Janet Yellen’s speech in Jackson Hole at 16:00 CET. Yellenspeaks on the subject of the labour market

German Bund yields stayed one more day at a touch below 1% clearly ignorant of anything that goes on in the other markets.

Aussie was roiled by Thursday’s HSBC China flash PMI reading but was spared further drama during the European and US hours overnight.

The pair traded a fresh low for 2014 so far of $1.3242 during yesterday’s Asian session but

The pair closed in NY Thursday at $1.6581, off a $1.6602 recovery high after rate had corrected off a UK retail sales react low of $1.6569.

JPY opened at Y103.85 this morning after failing to extend its highs beyond the Asian high of Y103.96 in overnight dealings.

EUR/USD – BEARISH BIAS – (1.3100-1.3450).

While the Euro is oversold technically, the fundamental condition would seem to leave the bear camp incontrol.

Like the Euro, the Swiss appears to be technically oversold and perhaps somewhat overdone from a fundamental perspective.

With the September Yen reaching down to a long term consolidation low zone on the charts around the96.00 level

While the Dollar forged another new high for the move overnight it has been unable to hold all of thosegains into the early US Thursday trade.