Forex Position

The pair tests fresh daily lows in the 110.90/80 band. The down move in spot echoes the fall in US-10 year yields. US Retail Sales expanded more than expected in July. After reaching fresh multi-day tops in the 111.45/40 band in early trade, USD/JPY has now retreated to the area of daily lows around 110.90.

Institue of International Finance’s chief economist recently crossed the news wires saying the emerging market capital flows following Turkish lira drop were indicative of a potential for contagion, as reported by Reuters. Key quotes Obstacles for IMF program for Turkey are quite high as it would require higher interest rates, credit tightening. Meanwhile, according to Turkish officials,

   •  Lingering fears about Turkey’s financial crisis exerted some fresh selling pressure around equities and was seen benefitting the Japanese Yen’s safe-haven appeal.     •  The pair retreated sharply from a one-week high level of 111.43 and broke below a short-term ascending trend-channel formation on the 1-hourly chart.     •  A follow-through weakness below

GBP/USD bears show no mercy as Cable reached a new 2018 low below the 1.2700 figure. GBP/USD is trading below its 50, 100 and 200-period simple moving averages on the 15-minute chart suggesting a strong bearish bias as the market is down for the 12th day in a row. There seems to be little significant

“Industrial production edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months,” the Board of Governors of Federal Reserve System said on Wednesday.  Key quotes “Manufacturing production increased 0.3 percent, the output of utilities moved down 0.5 percent, and, after posting five consecutive months of

Moved below the level yesterday and has stayed below The EURUSD moved below the 200 week MA yesterday at 1.1356. That was the first look below the level since November 2017.  Last week, the price fell below the 100 week MA at 1.1460. That was the first time since May 2017 (blue line in the

   •  Upbeat US monthly retail sales data provide a minor lift in the last hour.   •  Downward revisions of previous month’s figures kept a lid on additional gains.    •  Sliding crude oil prices weigh on Loonie and remain supportive of the bid tone. The USD/CAD pair held on to its daily gains and was

EUR/USD almost reached the 1.1300 earlier in Europe as EUR/USD hits a new 2018 low yet again. EUR/USD bears objective is to breakout below 1.13000 in order to target 1.1250 May 24, 2017 high and 1.1178 June 27, 2017 low. On the flip side bulls will try to break above 1.1347, intraday swing high in

July 2018 US advance retail sales highlights Ex autos ++0.6% vs +0.3% exp Prior ex autos +0.4% (revised to +0.2%) Ex autos and gas +0.6% vs +0.4% exp Prior ex autos and gas +0.4% (revised to +0.2%) Control group +0.5% vs +0.4% exp Prior control group +0.3% (revised to +0.2%) The control group is the spot to

Empire manufacturing index for the month of August 2018 The empire manufacturing index for the month of August came in better than expected at 25.6 vs 20.0 expected. Forty-two percent of respondents reported that conditions had improved over the month, while 16 percent reported that conditions had worsened.  employment index 13.1 versus 17.2 in July new

Talking Points: – USD/TRY has extended its retracement, but not because of improving conditions between the US and Turkey, but rather because the Turkish government is making it harder for foreigners to short the Lira. – A weak earnings report by a major Chinese financial institution has done more to move emerging markets today than

Trading the News: U.S. Advance Retail Sales Updates to the U.S. Retail Sales report may spark a bearish reaction in the U.S. dollar as household spending is expected to increase 0.1% in July versus the 0.5% expansion the month prior. A marked slowdown in private-sector consumption may dampen the appeal of the greenback as it

TALKING POINTS – US DOLLAR, YEN, TURKEY, STOCKS, UK CPI, POUND US Dollar, Yen rise as market sentiment sours anew in APAC trade Aussie and New Zealand Dollars fall alongside stocks, Turkish Lira British Pound may overlook UK CPI as BOE eyes Brexit uncertainty Haven-seeking capital flows buoyed the US Dollar as risk appetite soured

CRUDE OIL & GOLD TALKING POINTS: Crude oil prices may fall further on EIA report Gold prices digest losses after dramatic selloff TIC data may overshadow retail sales statistics Crude oil prices swung lower as members of a UK union at three Total-owned rigs agreed to negotiations on hours and pay following a series of

Trading the News: Australia Wage Price Index (WPI) Updates to Australia’s Wage Price Index (WPI) may keep AUD/USD under pressure as the gauge for household earnings is expected to hold steady at 2.1% per annum for the fourth consecutive quarter. Signs of subdued wage growth should keep the Reserve Bank of Australia (RBA) on the

Euro Talking Points EUR/USD slips to fresh 2018 lows even as the Euro-Zone Gross Domestic Product (GDP) report instills an improved outlook for the monetary union, with the exchange rate at risk for a further decline as the bearish momentum appears to be gathering pace. EUR/USD Outlook Mired by Oversold Signal The Euro is back

The Japanese Yen is has been paring gains against the US Dollar since the start of the week with USD/JPY testing initial resistance today in early US trade. Here are the updated targets and invalidation levels that matter on the USD/JPY charts. Review this week’s Strategy Webinar for an in-depth breakdown of this setup and