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USD index continues to be in weakness trend

USD index falling below 90 in Asian session as it continues to be in weakness trend which leads by the downside run on USDJPY and higher GBP effect. USDJPY broke 110 pivot level and expected to go lower down to 108.00 almost near to the lowest of 2017 at 107.32 under fragile USD sentiment. Trump trade policy driven more protectionism risk and will pullback some risk trades that starts earlier from this year. USDJPY goes lower despite the record close of US stock market as Nikkei goes lower and the worsening in Japan’s trade surplus also added some earlier pressure for the pair. Today some option strikes around 110 expiry and the lack of follow through selling below 110 might see some stalling around current level for USDJPY.

GBP and EUR hits a fresh high earlier of 1.4049 and 1.2335 respectively before having some shallow pullback. Sentiment remains constructive despite deeply overbought technical and tomorrow’s ECB meeting will still be the major risk event for EUR and EUR cross but some sideway consolidation for EUR is higher likely for today.

GBP going up by weakening of USD and cross strength effect. And UK unemployment rate and Claimant Count as well as average earnings data might have some impact but Brexit negotiations will still have a hidden concern for next direction. Commodity currencies goes higher as well  due to further USD weakness and short term still follows the USD move on those currencies. Later the US PMI data, existing home sales and stock/bond market move will dominate the intraday action.

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    Research Risk Warning

    At Hantec Global Ltd we provide an execution only service. Any opinions expressed by analyst Richard Perry should not be construed as investment advice or an investment recommendation. This report does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. Forex and CFDs are leveraged products which can result in losses greater than your initial deposit. Therefore you should only speculate with money that you can afford to lose. Please ensure you fully understand the risks involved, seeking independent advice if necessary prior to entering into such transactions.