Forex Analysis
USD/JPY: This cycle is different?
The BoJ-Tankan’s large manufacturers’ business sentiment DI is a yardstick for Japan’s economic cycle.
The Global Macro Pulse
Overnight Price Action EUR popped higher to 1.3620, extending its post Draghi gains before retracing to 1.3606.
FX Daily
Market movers today * Markets are in a waiting position for the battle on raising the debt ceiling. There are still no signs of a resolution to the government shutdown.
ECB comment – Draghi ready to consider all available instruments
The ECB kept its key rates unchanged at today’s meeting and gave no new signals regarding future policy actions.
USDJPY – new wave-E target at 97.08 = .618wave-C
We thought the 2 trend lines at 97.55 and the corrective nature of wave-E favored the long side in $JPY but Monday’s strong bounce was never confirmed with a higher close.
EURUSD – bearish shooting star at range highs threatens n/t
Yesterday’s Euro posted a bearish shooting star candle at the top of the 2-week bull flag which further adds import to the reversal.
JPY Mid-day Analysis
The December Yen continues to be the main beneficiary of Washington budget difficulties, with prices reaching a fresh 5-week high before losing upside momentum early this morning.
CHF Mid-day Analysis
The December Swiss was able to bounce back from last night’s moderate pressure, but is making little headway with recovering from yesterday’s sizable key reversal from a new 16-month high.
EUR Mid-day Analysis
The December Euro has held its ground within a fairly tight trading range during the overnight session, but may be vulnerable to fresh pressure from this morning’s events.
USD Mid-day Analysis
The Dollar made a modest attempt towards building onto yesterday’s late recovery, but has since fallen back on the defensive heading into this morning’s trading.
Morning FX Market Commentary
Major currencies end virtually unchanged Neither the US government shutdown, nor the Italian political situation are able to give major crosses direction.
Will ADP be more important during the shutdown?
Today’s FX daily begins with a very simple question: will the market react more strongly than usual to ADP now that Friday’s NFP data may be delayed?