Currency snapshot (major pairs)

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.