USD index lowers down after the Part II speech of Powell in soft tone trying to play down aggressive rate hike effect despite of US economy to remain robust in short term. Trump trying to impose tariff on Steel and Aluminum boosted up some global trade tension and rising risk for protectionism that driven US stock to go lower as the UST yield lowers down also with some risk off sentiment processing. USDJPY lowers down on risk off YEN cross selling, lower UST yield, falling US and Japan stock market as well as the effect on Kuroda saying next year will consider rate normalisation. Short term price action remain bearish and risk for lower test to 105.50 and 105.00 with topside sellers above 106 for the day.
EUR rebounded on broad EUR cross short covering in ahead of Sunday’s Italian election and Germany SPD vote. And short term base around 1.2150-60 confirmed, as today large size option expiry at 1.2250 will act some support intraday with topside resistance at 1.2320 and then 1.2350.
GBP still volatile and choppy move with lack of progress on Brexit negotiation as well as weak USD tone that driven more risk off selling. Today Theresa May and BOE’s Carney speech might have some intraday impact and short term choppy range trading remain to be high likely.
Today US ISM NY index, Michigan Consumer Sentiment Index, risk sentiment and stock/bond market move will dominate the intraday action.