Forex Analysis
Morning FX Market Commentary
Dollar finds better bid On Wednesday, higher core bond yields and a rebound in USD/JPY supported the dollar across the board.
FX Daily
Market movers today • The situation in Syria as well as the crisis in the emerging markets continue to be the main focus.
Preparing for a Lower NZD?
• NZD sell flows continue to dominate • Exporters still well covered, although hedging duration continues to drift lower
EURUSD – above 1.3400 confirms bullish consolidation
Euro has now spent a week above the recently broken long-term downtrends. The consolidation above the breakout levels is following a bullish uptrend from 1.28.
USDJPY – bear flag leads to final wave-E decline targeting ~96.40
The idealized end to this 3+ month triangle would be a decline to the uptrend line at ~96.40. If prices break the wave-C low at 95.81 the higher lows and bullish triangle are no longer valid.
AUDUSD – bear pennant suggests one more rally to .9110/.9170
The sideways action from the July low is following the script of a bear pennant with lower highs/higher lows.
CHF Mid-day Analysis
The September Swiss is staying close to unchanged levels this morning, and has been able to shake off a mildly weak reading on Swiss consumption levels.
EUR Mid-day Analysis
The September Euro is finding moderate pressure this morning, but is still holding up reasonably well given this week’s decline in global risk appetites.
JPY Mid-day Analysis
The September Yen made a fresh two-week high last night, but has lost upside momentum and has fallen all the way into negative territory this morning.
USD Mid-day Analysis
The Dollar was able to find its footing after posting a new 1-week low during overnight trading, but still has some way to go in order to fully regain upside momentum.
The Global Macro Pulse
Overnight Price Action Concerns over geopolitical risk in Syria sparked a sharp sell-off in Asian equities. The Nikkei dropped 2.4%, the Philippines shed 5.4%, the Hang Seng and
Bigger crises have had more innocuous beginnings
– Watch for any breach of the ‘the firebreak’ that exists between large C/A deficit and surplus countries.