Forex Analysis
EURUSD – wave-4 bull flag above 38.2% Fib ahead of new highs
Our last forecast included a call for a wave-4 correction ahead of new cycle highs. The Euro is still tracing a shallow, bull flag correction above the 38.2% retracement at 1.3476.
EUR Mid-day Analysis
The December Euro has been unable to shake off the impact of some fairly dovish comments from ECB President Draghi during yesterday’s session,
CHF Mid-day Analysis
The December Swiss has consolidated last week’s updraft within a relatively tight trading range, but continues to have trouble with breeching the 110.00 level early this week.
JPY Mid-day Analysis
The December Yen remains the safe-haven destination of choice for now, but Japanese domestic issues are starting to have a corrosive effect on the market this morning.
USD Mid-day Analysis
The Dollar continues to have trouble sustaining upside momentum, but has been able to hold its ground within positive territory early in today’s trading session.
Morning FX Market Commentary
Euro hit by mild profit taking The inability to eke out more gains following the post-FOMC bounce gave way to mild profit taking yesterday.
Vol Now compared to the 2006-7 dead zzzzzone
Amazingly after the FOMC last week delivered the equivalent of a 20bp surprise for 10 year Treasury yields, implied vols for the USD versus the majors still slipped across their respective curves.
The Global Macro Pulse
Overnight Price Action Yesterday’s risk asset sell-off is extending. The Nikkei opened 0.7% lower after the long weekend holiday,
FX Daily
Market movers today * In Europe the main focus will be the IFO business survey in Germany. We expect IFO to have improved in September to around 105 and
EUR Mid-day Analysis
The December Euro was unable to hold onto early gains this morning, but has held within the recent consolidation price range after this weekend’s “mixed” results.
JPY Mid-day Analysis
The December Yen continues to build onto last Friday’s recovery from weekly lows, and is posting moderate gains early in this week’s trading.
CHF Mid-day Analysis
The December Swiss is finding moderate pressure this morning as the market continues to slide further away from the key 110.00 level this morning.