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.