FX Strategy 18 Jun 19

JPY and NZD are the top G10 FX gainers today, up 0.24% and 0.2% vs the dollar while EUR and NOK are the top losers, down -0.3% and -0.26% vs the dollar. USD is trading firm ahead of the FOMC this week; there is now only a 20% probability of a rate cut at this meeting with 70% probability of a rate cut at the July meeting. Elsewhere, Sterling continues to weaken as investors worry about a no-deal Brexit. In the Asian equities space, the Nikkei 225 closed -0.72% lower at 20,972.71, Hang Seng closed 1.0% at 27498.77 and Kospi ended 0.38% at 2098.71. The European equities were trading firm with the FTSE up +0.57% at 7399.11, DAX up +0.6% at 12158.18, and CAC up +0.97% at 5443.01. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 2.0492% and the Bund 10-year yield trading at -0.298%. In the energy space, the Brent (front month) is trading down (-0.62%) for the day at $60.56.



Economic Calendar



10-Year Yields Daily Chart (6-month)



USD-Index Daily Chart (6-month)



Brent Front Month Daily Chart (6-month)



Trade Weighted Basket Hourly (two-week)





EURUSD Chart (Two-week)



Strategy: Resistance at 1.1244 for 1.1110
Short-term view: EUR/USD resistance at 1.1244 and MACD and RSI have a bearish bias, we look for a dip to 1.1110. Above 1.1244 to open 1.1289.


GBPUSD Chart (Two-week)



Strategy: Resistance at 1.2550 for 1.2481
Short-term view: GBP/USD has resistance at 1.2550, MACD and RSI are bearish. Hence, we see a dip to 1.2481, likely 1.2421. Above 1.2550 to open 1.2600.


USDJPY Chart (Two-week)



Strategy: Resistance at 108.73 for 107.57
Short-term view: USD/JPY resistance at 108.73, MACD and RSI are giving bearish signals, Hence, we see a dip to 108.01, probably 107.57. Above 108.73 to open 109.15


AUDUSD Chart (Two-week)



Strategy: Resistance at 0.6877 for 0.6771
Short-term view: AUD/USD resistance at 0.6915, MACD and RSI have bearish bias. Hence, we see a dip to 0.6771, likely .6725. A move above .6915 to open .6950.



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