Dollar index trading at 94.72 (+0.11%)
Strength meter (today so far) – Euro -0.15%, Franc -0.56%, Yen +0.01%, GBP -0.25%
Strength meter (since last week) – Euro +0.36%, Franc -0.17%, Yen -0.25%, GBP +0.65%
EUR/USD –
Trading at 1.166
Trend meter –
- Long term – Sell, Medium term – Sell, Short term – Buy
Support
- Long term – 1.10, Medium term – 1.12, Short term – 1.15
Resistance –
- Long term – 1.22, Medium term – 1.18, Short term – 1.18
Economic release today –
- NIL
Commentary –
- The euro is up this week as the dollar weakens against majors on rate hike speculation. Active Call - Sell Euro at 1.218 with 1.17 as target; target revised lower to 1.095; Euro might correct towards 1.22 area
GBP/USD –
Trading at 1.314
Trend meter –
- Long term – Sell, Medium term – Sell, Short term – Sell
Support –
- Long term – 1.19, Medium term – 1.23, Short term – 1.27
Resistance –
- Long term – 1.35 Medium term – 1.32, Short term – 1.305
Economic release today –
- RPI inflation up 3.5 percent y/y in August.
- HPI inflation at 3.1 percent y/y.
- PPI output up 2.9 percent y/y in August.
- PPI input up 8.7 percent y/y in August.
- CPI up 2.7 percent y/y.
- Core CPI up 2.1 percent y/y in August.
Commentary –
- The pound is still the best performer of the week on the possibility of a Brexit deal by November. However, May reportedly going to reject EU’s offering on Irish border. Active call- short term sell at 1.413 targeting 1.375 (target reached); extended to 1.354 (target reached); extended to 1.25
USD/JPY –
Trading at 112.3
Trend meter -
- Long term – Sell, Medium term – buy, Short term – Range/Buy
Support –
- Long term – 104.2, Medium term – 106.2, Short term – 109.2
Resistance –
- Long term – 116, Medium term – 114, Short term – 112
Economic release today –
- BoJ kept interest rate unchanged at -0.1 percent.
Commentary –
- The yen remains trapped in bull/bear fight amid risk aversion and a strong dollar. The worst performer this week on lack of risk aversion despite a weaker dollar.
USD/CHF –
Trading at 0.969
Trend meter –
- Long term – Buy, Medium term – Range/sell, Short term – Range/Buy
Support –
- Long term – 0.90, Medium term – 0.92, Short term – 0.95
Resistance –
- Long term – 1.03, Medium term – 1.00, Short term – 1.00
Economic release today –
- NIL
Commentary –
- Franc is a much worse performer than the euro this week.