Forex Market
EUR/USD Analysis
Closed in NY at $1.2566 after rate had squeezed to lows of $1.2555, the move taking direction from slippage in the equity markets, recovering off the lows as Wall Street pared losses into the close.
USD/JPY Analysis
Closed in NY at Y78.40 having recovered off earlier lows of Y78.28. Sentiment returned in early Asia and the pair lifted to Y78.45, extending gains through the Tokyo fix to Y78.54 on local demand.
Global Technical Watch – Quick Charts (Sep 5)
The US dollar is catching a near term bid and for this to turn broad based, we prefer to see the US dollar index above one month trendline resistance and the Asia dollar index below 115.00. Until then, the bounce is likely corrective.
Asian Currencies Technicals
AUD/USD: 100 day MA just below market. The pair pulled up just short of the 100 day MA after having taken out the 38.2% Fibo level, while daily tech studies remain very much in oversold territory.
EURUSD knocked back to the mat as Spanish yields swoon
EURUSD got a bit of a nosebleed above 1.2600. The approaching ECB meeting on Thursday is the key test for short term EURUSD sentiment – is about EU tail risks any more or is it all about devaluation?
Americas FX Daily
EUR still well supported ahead of key month What happened overnight – RBA leaves policy unchanged – Moody’s cuts outlook for ratings on EU issuance – Swiss GDP weaker than expected
FX Daily Strategist: US
– Long EUR beyond any short-term disappointment from ECB Sep 6 The short end of euro area bond markets have rallied (both Spain and Italy 3Y -30bps) in response to reported comments from ECB Draghi that sovereign debt purchases of up to three years would not be state financing helped markets further.
FX Market Analysis
GBP: Opened early Europe at $1.5885, stg0.7936, GBP opened in Asia at $1.5885 and ground lower before dip demand recovered and settled in a tight range.
FX Daily Strategist: Europe
– Long EUR beyond any short-term disappointment from ECB Sep 6 Markets traded in positive territory yesterday in Europe in an otherwise quiet session on anticipation of the ECB meeting on Thursday.
Technical Analysis
Focus on unfolding SEK weakness & wider 10y FRA/GER spread… EUR/USD Testing resistance again … EUR/SEK Testing overhead… AUD/USD Seems to respect support resistance… USD/SEK Should lift above the 21d EMA…
USD/JPY Analysis
The pair sat heavy in thin European trade and closed near session lows at Y78.26. Rate opened in Asia at Y78.30 and was led higher through the Tokyo fix on strong cross yen demand to Y78.43, later easing to settle around Y78.35.
GBP/USD Analysis
Cable was unable to make a clean break of $1.5900 in European trade yesterday, printing highs of $1.5899 following release of better than expected mfg PMI data.