A quiet day on most of the majors with only the GBPUSD moving over 100 pips lower. The currency pair is only a few pips off the Brexit lows and key support levels. The Rand has had another great day and looking strong against the USD and GBP. Forex traders will be watching the Bank of Japan first thing in the morning and the FOMC meeting in the evening. Both likely to cause some volatility so tread carefully.
A bullish start to the trading day saw the EURUSD open up around 1.1175 and trade up to 1.12135 on early trade. Since then we have seen a drift down and currently trading near the lows of the session. Hard to explain the moves but weaker PPI numbers out of Germany might have been the catalyst. Not normally a market mover. The range has been subdued and below the ADR of 57 pips.
A much livelier day in Cable (GBPUSD) as the market opened and traded flat in Asia. It has drifted 100+ pips lower during the European and US sessions. A lack of economic data out today suggests that FX traders are just lightening positions ahead of the FOMC tomorrow evening. The average daily range is 100 pips and we have exceeded that slightly today. Back down towards the lower support Dean discussed which is 1.2885.
The Aussie (AUDUSD) is very flat today. Only marginally higher than the open and has traded all day in a 35 pip range. Everyone on Fed-watch in this Forex pair and would expect the same tomorrow. No major data to speak of unless the Bank of Japan do something contrary in the early hours of the morning.
The NZDUSD attempted to rally this morning and made several attempts at our 23.6% Fibonacci level of 0.7357. Each time being knocked back. We took a dive early in the US session but seem to have stabilised a bit since then. Currently trading 0.7320. No data to speak of out tomorrow morning.
The USDCAD has made a 3rd attempt at our upper resistance line of 1.3250 but has been sent packing as the market struggles to punch through a level that has been in place for months. Looking like a triple top and a weaker oil price the only thing holding the market up at these levels. A small range of 53 pips today against an ADR of 87 pips.
In the USDZAR, another very bullish day for the Rand. The ZAR opened trading around 14.00 this morning and has had a steady move downward. With no news to suggest the country is about to implode, investors in low interest rate environments look to countries like South Africa for yield. We are near the lows for the day at 13.85.
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