Forex Analysis
Morning FX Market Commentary
USD/JPY and EUR/USD are nearing the 2013 top An ongoing risk-on trade and expectations of more BOJ easing are keeping the yen under pressure.
Now Neutral AUD/NZD, Looking Towards Thursday’s Events
We have said recently we would reassess our bullish AUD/NZD Blueprint view on a weekly close below 1.12. This has now happened, and while the decline continues to take the cross further from our sense of fair value currently,
The Global Macro Pulse
EURUSD rallied further in Asia to 1.3756 while AUDUSD and USDJPY were flat at 0.9105 and 103.28, respectively. In EM Asia FX, the MYR has outperformed, appreciating to 3.2005 to the dollar while USDPHP rose to 44.280,
FX Daily
In connection with the ECOFIN meeting EU finance ministers are expected to continue yesterday’s euro-group negotiations about a resolution mechanism for failed banks.
GBP/USD Analysis
The pair closed in NY Monday at $1.6428 after rate had extended its recovery off earlier Asian lows of $1.6316 to a high of $1.6433, seen in the NY afternoon.
EUR/USD Analysis
The pair opened at $1.3739 this morning, after a $1.3714 to $1.3746 US trading range overnight. Euro-dollar spent the early hours of the session today in a lackluster $1.3735 to $1.3745 range.
AUD/USD Analysis
The pair started today’s session at $0.9112 and witnessed a dip below $0.9100 in thin, early dealings to $0.9075, weighed down by selling in aussie-yen and aussie-kiwi crosses, dealers say.
USD/JPY Analysis
The pair started the session facing persistent weakness after dollar-yen peaked at Y103.32 last night in the US. The pair opened at Y103.26 today while euro-yen started at Y141.88, after a Y141.94 high in the US overnight.
Valuing NZD Amid Soaring Terms of Trade
We have updated our “fair value” purchasing powerparities (PPP) on the NZ dollar. And we’ve augmentedthese with due consideration of New Zealand’s boomingterms of trade.
The greenback remains apprehensive
EUR: we remain negative on the single currency As expected, the European Central Bank kept its monetary policy on hold last week,
USDJPY – wave-5 rally to 103.74/104.60 could complete tomorrow
There is a cycle day tomorrow that could indicate a minor top in USDJPY as wave-5 of (3) completes. Upside targets include the recent 103.38 high and the May 103.74 high.
So what is driving EURUSD higher?
Earlier this year it seemed impossible to think that EURUSD would appreciate when the prospect of Fed tapering was gathering pace; but this is exactly what is happening.