FX Outlook: JPY Targets 110.00, Stalls at the Initial Test, but Pressure Continues
All eyes were on the JPY pairs today,
led by USD sales down towards the March lows, breaking below here and
110.50 to put in a test on 110.00.
We managed to hold some 25
ticks or so off this key area, with a number of ‘jolts’ higher along the
way, with source reports of the BoJ considering further easing measures
and a stronger than forecast US non-manufacturing ISM. The downside
remains vulnerable nevertheless, and unless we get a significant
recovery through 111.00, sub 110.00 is still on the cards.
rates also broke a series of big figure levels, but major support points
intact as yet.
GBP is back on the rack with EUR/GBP grinding through
key levels on the upside; .8030-65 the area to watch for here.
through the Friday lows as a result, but 1.4100 holding for now. This
is/was in spite of an in-line UK services PMI, but Brexit fears will be
cited for the latest weakness.
Spot EUR digging in as a result, but some
weakness creeping in with the USD index threatening higher. AUD enjoyed
a brief reprieve post RBA, but the downside eventually resumed to set
fresh lows ahead of .7500.
NZD/USD reclaimed .6800 on the back of a
surprise rise in GDT index and WMP, but gains tentative.
stretched through 1.3200, but losing a little momentum since. Oil
relatively well behaved in comparison, but prices heavy.
(Market News Provided by FXstreet)