USD sellers back in yet again - NY targetting GBP

Published date: 04/12/2018
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Late in the day, traders go for the obvious narrative of buying USDs again, in what now seems an inevitable development every time we get an upturn in either EUR/USD or Cable. Ahead of the Brexit (meaningful) vote next week, GBP is set to remain under pressure, and the support area at 1.2700-1.2660 will likely be continuously targeted as an 'easy option' in the absence of any material data to come. At the end of the week, we have the US jobs report to look to, and this should also underpin the greenback until then if not beyond.  

EUR/USD earlier took out resistance at 1.1400, though we have another band of resistance at 1.1450-1.1500 which will a tougher prospect to overcome under the circumstances. With Eurozone data on the soft side, the single currency is also vulnerable to the downside, with little sign as yet that the EU is about to resolve debt issues with Italy.  

USD/JPY has recovered to 113.00 despite a marked downturn in stocks again - this also despite the fact the US Treasury yields are also lower pointing to a lack of interest in trading yield differentials.  

We should technically see AUD and NZD coming under some weight with risk sentiment turning sour again, though once again, the focus is on the usual suspects at the moment with EUR/USD testing the support zone seen down to 1.1310-00 while Cable continues to eye 1.2700 despite repeated failed attempts to break below here.  

There is a sense of Groundhog day in these markets at present! 


Comments

  • USD sellers back in yet again - NY targetting GBP
    Lilly says:
    06/12/2018

    Do you guys provide signals?

  • USD sellers back in yet again - NY targetting GBP
    Sam says:
    06/12/2018

    Tell NY target JPY

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