A Subdued Start To The Week Despite An Interesting Calendar

It's been a subdued start to the week in most G10 currencies and the people stuck in their commute to work (due to the storm in northern Europe) most likely won’t miss out on much today.

Looking at this week’s calendar, it’s easy to get excited with both the Federal Open Market Committee and the Reserve Bank of New Zealand making rate decisions on Wednesday, the Bank of Japan (BOJ) following suit on Thursday and key UK data—PMI— being released on Friday. But judging from the last couple of months’ data releases I think it’s safe to say that none of the events will rattle to market. Corporate month-end flow will on the other hand most likely dominate this week.

USDJPY – Nikkei up 2.19 percent this morning and we saw a USDJPY squeeze through 97,50 and further to 97,80 in the early hours. 98.00 resistance will most likely cap a further rally for today but dips toward 97.00 are well supported. But with the BOJ on Thursday I expect the pair to be in a contained ranged until then.

EURJPY – offers emerge above 135.00 but the first real resistance is at 135.50. On the downside, last week’s pivot around 134 seems supported and further support again at the the daily Ichimoku cloud upper barrier at 132.70.

AUDUSD – there is still a lot of talk about 0.96 strikes rolling off again this week and we saw last week how it kept the pair pegged to this level. Support at 0.9550/60 and large resistance at 0.9740 (around last week’s high and 200-day moving average).

NZDUSD – AUDNZD buying last week punished the kiwi dollar and we find the NZDUSD pair close to some of the lowest levels in October. Support at 0.8190/0.8200 and resistance now at 0.8350 and 0.8400

USDCAD – the Bank of Canada's dovish stand last week saw the loony weakening and the 1.0500 levels seems in sight now. Support ahead of 1.0400 and offers above 1.0470 towards 1.0500