FX Strategy 28 Aug 19

JPY and SEK are the top G10 FX gainers today, up 0.01% and 0.0% vs the dollar while GBP and NZD are the top losers, down -0.9% and -0.25% vs the dollar.

The forex market continued to remain wary of a global slowdown with the Japanese Yen holding on to its recent gains. The US 2-10 yield curve inverted further deepening fears of a possible recession.

GBPUSD fell on reports that Queen may be asked to suspend Parliament as early as Wednesday. Elsewhere, AUD remained on the back foot after RBA Deputy Governor mentioned that a weak Aussie is beneficial for the economy.

In the Asian equities space, the Nikkei 225 closed up 0.11% at 20,479.42, Hang Seng closed -0.19% at 25615.48 and Kospi ended 0.86% at 1941.09. The European equities were trading mixed with the FTSE 0.44% at 7120.79, DAX -0.15% at 11712.69, and CAC -0.31% at 5370.36. In the rates market, global yields were trading weaker; the US 10-year yield was trading at 1.4727% and the Bund 10-year yield trading at -0.706%. In the energy space, the Brent (front month) is trading up (0.77%) for the day at $59.97.

 

 

 

 

Economic Calendar

 

 

10-year Yields Chart (6-month)

 

 

USD-Index Daily Chart (6-month)

 

 

Brent Front Month Daily Chart (6-month)

 

 

Trade Weighted Basket Hourly (two-week)

 

 

Major Currency Pairs

 

EURUSD Chart (Two-week)

 

 

Strategy: Support at 1.1062 for 1.1167
Short-term view: EUR/USD support at 1.1062, MACD and RSI are giving mixed signals Hence, we see a move to 1.1167, possibly 1.1200. Below 1.1062 to open 1.1019, likely 1.0950

 

GBPUSD Chart (Two-week)

 

 

Strategy: Resistance at 1.2265 for 1.2141
Short-term view: GBP/USD resistance at 1.2265, MACD and RSI are weak hence, we see a dip to 1.2190, likely 1.2141. Above 1.2265 to open 1.2306.

 

USDJPY Chart (Two-week)

 

 

Strategy: Resistance at 106.30 for 105.03
Short-term view: USD/JPY has resistance around 106.30 MACD and RSI are giving mixed signals, hence, we see a move lower to 105.03 and 104.29. Above 106.30 opens 106.65-107.05

 

AUDUSD Chart (Two-week)

 

 

Strategy: Resistance at 0.6800 for 0.6725
Short-term view: AUD/USD MACD and RSI are giving mixed signals, we look for resistance at 0.6800 for a move lower towards 0.6725, likely 0.6650. Above 0.6800 we look for 0.6830-0.6869 in the immediate short-term.

 

 



Leave a Reply