The dollar once again continuing its gain across the board as the G20 meeting shows no sign that the stimulus measures that have been in place for economic recovery are hear to stay. All Asian stocks overnight fell overnight, a move which has crossed into the European markets this morning. The DAX being the only market that is currently trading higher as Angela Merkel is re elected as the Chancellor of Germany over the weekend. As a result of the Asian stock market fall, the Yen strengthened to an 8 month high against the dollar hitting a high of 88.22, and continued its gain across all other trading counterparts. Commodities are trading lower this morning at time of writing also giving weight to the greenback's move. The US equities are pointing to a higher open at time of writing which could reverse the gains of today for both the dollar and the Yen.
Cable trading lower again having reached a high of 1.5920 in early European session, now at 1.5850. The lows overnight of 1.5769 could easily be revisited should stocks and commodities continue to fall. With the US equities looking to open higher however, an element of retracement could certainly be on the cards before the next push southwards. With economic data thin for today, stocks will be the influencing factor for dollar moves. Should 1.5920 break and hold, expect a move back up to the 23.6% fib level of 1.5940 for the weeks trading ahead of the 38.2% fib level of 1.6040.
The Euro trading lower against the dollar and the yen in Asian trading overnight, now through the European session having retraced off the lows of 1.4565 to trade at 1.4660. The 38.2% fib level the resistance barrier as we head into the US session at 1.4675. Should that break and hold, expect a move back up towards the 50% level for the week at 1.47/10. Support, should the US session sell off once again along with the commodities at 1.4635 ahead of 1.46. The Euro trading higher against the Yen also this morning, now at 131.15, 131.95/00 the next key resistance level (38.2% fib level for the week).
The Yen again the strongest currency on the table as it gains across all 16 traded counterparts throughout the Asian session as the Asian stocks plummeted as the G20 meeting members showed no sign of halting the stimulus packages put in place for economic recovery. Against the dollar it has reached an 8 month high at 88.20/25, however has now retraced back to 89.70 nearing the 38.2% fib level for the weeks trading of 89.90. Should stocks continue their late European session gain into the US, expect a move back to that level ahead of 90.40 (50% level). Support at 89.30 ahead of 88.70.