EUR/USD
At the start of trade, this week, EUR/USD found itself in negative territory amid promising reports from the US that members of the Republican party were considering a six-week debt limit bill. This move to the downside was exacerbated as the week progressed by market talk of Asian account selling of EUR. With little in the way of euro zone macroeconomic data, the direction for EUR/USD was largely dictated by events in the US. However, towards the end of the week comments from Fed’s Bullard that a QE taper is less likely in October lead a change in direction for prices, with support being provided by a well received Italian auction and GBP weakness in EUR/GBP which helped the pair to finish in positive territory for the week. From a technical perspective recent strength for September and October can be represented by the widening of the 100 and 200-DMA’s.
GBP/USD
At the beginning of the week GBP looked set to gain with the current UK outlook being positive as market participants anticipated Thursday’s BoE release, with EUR/GBP trading in negative territory. The uptrend was extended when GBP/USD pushed through the key psychological level of 1.6100. However, this strength was compromised following a surge in USD strength as negotiations in the US between the Democrats and Republicans appeared to develop. One of the most notable data releases for the pair was the disappointing figures for the UK trade balance, Manufacturing and Industrial Production, which acted as a catalyst for downside with the BoE release failing to support price action. With regards to technicals, the resurgence of USD against GBP in recent trade has seen prices head below the lows seen on October 11 at 1.5966.
USD/JPY
The pair finished the week in positive territory despite downside being provided by unfavourable interest rate differential flows earlier in the week from USTs into JGB’s. However, this downward momentum was halted by the 200-DMA providing support for price action. As concerns in the US began to recede with negotiations gathering pace, the flows from interest rate differentials reversed amid a rise in US short-term interest rates. It is worth noting that the tone for the week was very much provided by the US with little in the way of significant macroeconomic news coming out of Japan. In terms of technicals, USD/JPY traded very much within the range of 50- and 200-DMA, however, this recent uptrend could see prices begin to test to 50-DMA at 98.32.
At the start of trade, this week, EUR/USD found itself in negative territory amid promising reports from the US that members of the Republican party were considering a six-week debt limit bill. This move to the downside was exacerbated as the week progressed by market talk of Asian account selling of EUR. With little in the way of euro zone macroeconomic data, the direction for EUR/USD was largely dictated by events in the US. However, towards the end of the week comments from Fed’s Bullard that a QE taper is less likely in October lead a change in direction for prices, with support being provided by a well received Italian auction and GBP weakness in EUR/GBP which helped the pair to finish in positive territory for the week. From a technical perspective recent strength for September and October can be represented by the widening of the 100 and 200-DMA’s.
GBP/USD
At the beginning of the week GBP looked set to gain with the current UK outlook being positive as market participants anticipated Thursday’s BoE release, with EUR/GBP trading in negative territory. The uptrend was extended when GBP/USD pushed through the key psychological level of 1.6100. However, this strength was compromised following a surge in USD strength as negotiations in the US between the Democrats and Republicans appeared to develop. One of the most notable data releases for the pair was the disappointing figures for the UK trade balance, Manufacturing and Industrial Production, which acted as a catalyst for downside with the BoE release failing to support price action. With regards to technicals, the resurgence of USD against GBP in recent trade has seen prices head below the lows seen on October 11 at 1.5966.
USD/JPY
The pair finished the week in positive territory despite downside being provided by unfavourable interest rate differential flows earlier in the week from USTs into JGB’s. However, this downward momentum was halted by the 200-DMA providing support for price action. As concerns in the US began to recede with negotiations gathering pace, the flows from interest rate differentials reversed amid a rise in US short-term interest rates. It is worth noting that the tone for the week was very much provided by the US with little in the way of significant macroeconomic news coming out of Japan. In terms of technicals, USD/JPY traded very much within the range of 50- and 200-DMA, however, this recent uptrend could see prices begin to test to 50-DMA at 98.32.