USD and GBP are the top G10 FX gainers today while SEK and AUD are the top loser down -0.38% and -0.32% vs the dollar, respectively. Overnight, China’s inflation rate came in as expected (1.9%) while Australian NAB business confidence underwhelmed (6 actual vs 8 consensus). Elsewhere, GBP rebounded on Tuesday as fears of a challenge to Theresa May’s leadership faded. That said, in our view, Sterling is now vulnerable to political noise over the coming days. In the equities space, the Asian markets traded largely in black with Nikkei 225 ending the day +0.66% higher at 22,196 and Kospi finishing +0.37% higher at 2,294; Hang Seng was an exception closing nearly flat at 28,682. The European equity indices were trading mixed, with the FTSE down -0.14%, DAX down -0.03%, and CAC up +0.23% so far. In the rates market, global yields were trading firm for the day with the US 10-year yield trading at 2.863% and the Bund 10-year yield trading at 0.32. In the energy space, the Brent (front month) rally continued today, trading at $79.12; next resistance comes in at $79.50. there is no tier one release during the US session but we will hear from ECB’s Angeloni and Lautenschlager at 1730 and 1800 GMT, respectively. Looking ahead, US CPI, Chinese trade balance, and BoC rates decision will be key events this week.

10-Year Yields Daily chart (6-month)

USD-Index Daily chart (2-month)

Brent Front Month Daily chart (2-month)

Trade weighted basket Hourly (one-week)

Major Currency Pairs

EURUSD Chart (Two-week)

Strategy: Resistance at 1.1758 for 1.1668
Short-term view: EUR/USD has resistance at 1.1758, MACD is topping and shooting star pattern was completed on daily candle. Hence, there are chances of a dip to to 1.1668. Above 1.1758 to open 1.1807.

GBPUSD Chart (Two-week)

Strategy: Resistance at 1.3318 for 1.3178
Short-term view: GBP/USD has come back in the bear channel and MACD is now looking to fall. Hence, we see a dip to 1.3178. A break above 1.3318 to open 1.3398.

USDJPY Chart (Two-week)

Strategy: Resistance at 111.27 for 110.75
Short-term view: USD/JPY has resistance at 111.27 and moving averages are flat . Hence, we see a dip to 110.75. A break above 111.27 to open 111.61

AUDUSD Chart (Two-week)

Strategy: Resistance at .7475 for .7409
Short-term view: AUD/USD has resistance at .7474 and MACD is overbought. Hence we see a dip to .7409, possibly .7382. Above .7494 to open .7517.

continued today, trading at $79.12; next resistance comes in at $79.50. there is no tier one release during the US session but we will hear from ECB’s Angeloni and Lautenschlager at 1730 and 1800 GMT, respectively. Looking ahead, US CPI, Chinese trade balance, and BoC rates decision will be key events this week.

BTCUSD 4-Hour Chart (Two-month)

(Chart by Reuters)

Strategy: Support at $6364 for $7266
Short-term view: BTC/USD support comes in around 6364 and bear channel top is breached and MACD is primarily bullish hence, we are looking for a further upside to 7266. Below 6364 is likely to open a test of 5964.