Forex Analysis
Q2 GDP Slip A Bit of a Dagg?
The big question for Thursday’s Monetary Policy Statement (MPS) is how much ground the RBNZ will cede to the stronger economic pointers and market pricing we’ve seen over recent months.
Weekly Commentary
In the July OCR review, the Reserve Bank gave a clear reminder that the next move in the cash rate will be up – though just not this year.
Weekly Economic & Financial Commentary
U.S. Review Mixed Signals About Third Quarter Growth • The August employment report signaled continued modest job growth.
USDJPY – NKY resistance suggests $JPY pullback to 99.15/98.52
Yesterday the Nikkei hit triangle resistance and the falling wedge target to (likely) complete wave-D of an unfolding bullish consolidation;
EURUSD – old 1.3207 support now resistance; n/t target is 1.3075
The Euro broke key 1.3207 support yesterday and the sell-off from 1.3452 is unfolding in 5 waves.
EUR Mid-day Analysis
In the face of economic disappointments today the Euro has a slightly positive sentiment. Yesterday’s Euro routing may have been just a bit overdone.
CHF Mid-day Analysis
The Swiss CPI came in unchanged for the year and down -0.1% on a month-over-month bases. Additionally, Industrial Orders dropped -4.2%.
JPY Mid-day Analysis
The Yen’s decline everyday this week is being reversed this morning with a fairly good rally.
USD Mid-day Analysis
Yesterday’s positive bias for the Dollar has quickly turned negative today. Most news out of Europe has been positive for the Dollar yet;
The Global Macro Pulse
S&P futures are off slightly after a lacklustre New York trading session. The Nikkei has fallen 1.3%, but the Kospi is up 0.4%,
August Angst
– Investors obsessed over surging US bond yields and the rout in emerging markets currencies
USDJPY – above 101.53 negates risk that rally is still wave-D
Now that the bull triangle has been broken it is important to highlight the risks to our call for a rally to 105.65/106.45.