Forex Analysis
Australian Markets Weekly
This last week’s inflation reading for the so-called headlinerate, that rose a higher-than-expected 1.2%, receivedsomething of a splash across the market wires and financialpress.
FX Viewpoint: EUR on a short leash
I never think of the future – it comes soon enough. -Einstein Where is EURUSD headed? What is fair value? – questions piling in my mailbox.
FX Sentiment Report
• The bearish shift against the USD that had been observed to-ward the end of September continued into the start of the US gov-ernment shutdown.
USDCAD – hit 1.0420 as expected…now breaking higher
Held the Sep uptrend line as it simultaneously tested channel/bull flag support. The decline from July fits well as a corrective a-b-c decline. Now with a close through 1.0420 in place,
USDJPY – above 97.60 confirms a-b-c correction complete
In either of the 2 cases we have presented to account for this 4+ month triangle, a hold of 96.57 is critical. Also a rally is expected under both scenarios.
EUR Mid-day Analysis
Early strength helped to lift the Euro up into new high ground once again, but lukewarm economic datacontinues to inject a note of caution into the market.
CHF Mid-day Analysis
Thursday’s key reversal may have been an early warning sign, as the Swiss Franc has given backmoderate overnight gains to fall well into negative territory early this morning.
JPY Mid-day Analysis
Positive inflation data at home and flight-to-safety flows from abroad lifted the Yen to a fresh 21/2-weekhigh, but the inability to hold above the 103.00 level may not bode well for later in the session.
USD Mid-day Analysis
While this morning’s early pressure was relatively modest, it has been more than enough to keep theDollar close to unchanged levels as the market is still showing little ability to
Central European Daily
We may see several new-comers to Czech Parliament after the early elections Czech early elections (scheduled for this weekend) should become the top regional eye-catcher in upcoming hours.
The Global Macro Pulse
Overnight Price Action Asian stocks sold off, led by 1.5% falls in both the Nikkei and Shenzhen.