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Depth Forex
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Depth Forex - For all your international payment and foreign currency needs.
Depth Forex - For all your international payment and foreign currency needs.

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Daily Forex Commentary

Australian Dollar
The Australian Dollar ascended against the Greenback yesterday as government yields hit their highest level since 2015 which gave support to the local unit. Pre FOMC announcement, AUD/USD hit a high of 0.8100 but soon pulled back falling almost a cent back under 0.8000 following the Fed release. As widely expected the Fed held the target rate steady at 1.00-1.25% and also announced the beginning of balance sheet normalisation next month after almost ten years of the onset of the global financial crisis. Markets are led to believe there will be three rate hikes in 2018 and perhaps one in December of this year. Aussie currently buying 0.8030 when valued against its US counterpart. Later today sees the RBA Governor Lowe speak in Perth on a speech titled ‘The Next Chapter’ to the American Chamber of Commerce.

New Zealand Dollar
The New Zealand Dollar is slightly stronger against the Greenback after the Federal Reserve on Wednesday said it would embark next month on its biggest policy shift since 2015. The central bank confirmed that it would start trimming the $US4.5 trillion balance sheet it built up. On the release of the FOMC statement the Kiwi spiked to a six week high of 0.7433. Looking ahead locally today and all attentions turn to the release of Gross Domestic Product for the second quarter which is expected to rise 0.8%, taking the year on year pace to 2.5%. The NZD/USD pair is currently trading at 0.7352. We now expect support to hold on moves approaching 0.7340 while any upward push will likely meet resistance around 0.7400.

Great British Pound
The Great British Pound enjoyed mixed fortunes through trade on Wednesday, rallying early before relinquishing gains in the wake of the Federal reserve’s policy announcement. Sterling found support early after retail sales for August printed well beyond expectations and heightened the likelihood of a BoE rate hike before the year is out; 66% of analysts are pricing in a November rate adjustment. Surging through 1.36 Sterling met resistance in softer wage growth and weaker company investment expectations edging lower into the FOMC’s policy announcement. The GBP then slumped back through 1.35 and touched intraday lows at 1.3456 following hawkish Federal Reserve commentary. Attentions now turn to mid-level macroeconomic indicators ahead of key Brexit commentary from Prime Minister Theresa May on Friday.

Majors
The US dollar advanced across the board through trade on Wednesday buoyed by commentary from the FOMC and Federal Reserve. Investors looked to unload USD holdings leading into the announcement forcing the greenback lower against a basket of major currency counterparts. The 19 nation Euro touched intraday highs at 1.2019 while the Yen touched lows at 111.25. The Dollar then enjoyed immediate upside and touched two month highs against the yen surging back through 112 while the Euro tumbled below 1.19. The U.S Central bank confirmed it would begin tapering its bond buying program next month reducing the scope of U.S treasuries to be re-invested. This was however largely anticipated and it was the suggestion a rate hike remains on the table before year end that drove the dollar higher. Despite persistently low inflation and mixed macroeconomic performance the committee members maintained their path to rate normalisation through 2018, however a reduction in the long term outlook from 3.00% to 2.75% capped USD upside while addendums to action and requirements for improved macro conditions ensured extended gains were curbed. Attentions now turn to ECB President Mario Draghi as he hits the wires and addresses attendees to the European Systemic Risk Board’s annual conference. Investors will be looking for any clues the ECB will soon begin tapering its own QE program.

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Daily Forex Commentary

Australian Dollar
The Australian Dollar has climbed back through Tuesdays day of trading against the Greenback buying above the 80c handle, overnight it touched a high of 0.8020. The minutes from the latest Reserve Bank policy meeting showed that the bank is more positive about the domestic outlook and are upbeat on the labour market. Despite this the notes of caution still remain with the RBA and they are unlikely to look at raining rates anytime soon. In other news, House Price Index came in at 1.9% in the June quarter vs an expected 1.2% gain which was the likely driver behind the Aussie push towards 80c. RBA assistant governor is due to speak today at a the Australian Business Economists Lunchtime Briefing in Sydney but markets will be keenly attuned to the Fed which is due to announce plans to begin unwinding it’s $4.5 trillion balance sheet.

New Zealand Dollar
The New Zealand dollar is stronger this morning when valued against the Greenback. The Kiwi reached an overnight high of 0.7326. Over the last few weeks the NZD/USD currency pair has ranged between 0.7200 and 0.7350, capped by election uncertainty, and by the downward trend in the Greenback. Looking ahead this week and traders are now preparing for the release of the quarterly GDP report on Thursday and the country's general election on Saturday. The NZD/USD pair is currently trading at 0.7314. We now expect support to hold on moves approaching 0.7240 while any upward push will likely meet resistance around 0.7329.

Great British Pound
With little headline data on hand Tuesday markets offered little to excite investors as a largely uneventful session saw the GBP see saw between intraday lows at 1.3470 and highs at 1.3552. Sterling found support early following reports Boris Johnson would quit parliament if his Brexit demands were not met. Johnson is seen to be hampering Prime Minister May’s push for a softer Brexit and the reports emboldened some analysts hopes that his secession would pave the way for simpler negotiations. The reports however were rebuffed by the former London Mayor and the small rains were lost as markets square positions into what will be an all-important domestic retails sales print and FOMC rate statement.

Majors
The US dollar weakened through trade on Tuesday edging lower against a basket of major currency counterparts as investors square positions ahead of what is a critical Fed and FOMC policy meeting. It is widely anticipated the Open Market Committee will announce plans to begin tapering its Quantitative easing program as early October and the expected slowdown in bond purchase signals a wider tightening in monetary policy conditions, with an eye to a possible rate hike in December. Falling through 111.50 JPY and giving up 1.20 against the Euro investors are poised for an adjustment in short and medium term outlooks.

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Daily Forex Commentary

Australian Dollar
The Australian Dollar fell 40 basis points during the American session to post a fresh 2-week low. During the Asian session, the pair tested the 0.8030 resistance level before ultimately turning to the downside. Opening this morning at 0.7960, the Aussie was hit on multiple fronts with mixed Chinese money data weighing on the Australian Dollar. The bearish outlook was further exacerbated by the sharp decline in the Canadian dollar, triggering a further sell-off in both commodity currencies. With the ‘Quantitative Tightening’ announcement widely expected to be released this Thursday, policy makers and indeed traders are positioning themselves for a world with higher borrowing costs, strengthening the outlook of the Greenback and in turn weighing on its counterpart the Aussie. With a quiet day on the domestic economic calendar, investors are treading water ahead of an action-packed Thursday.

New Zealand Dollar
The New Zealand dollar is weaker this morning when valued against the Greenback. The Kiwi reached an overnight high of 0.7343 before falling 0.5% for the day to 0.7250, almost a full cent off its high. The USD strength came as the market now expects the Federal Reserve to announce on Thursday the beginning of “quantitative tightening”, with its balance sheet expected to begin shrinking from next month, as the Federal Reserve keeps its options open for a possible interest rate hike later this year in December. Westpac Consumer Sentiment was released this morning which softened to a level of 112.4 in September, down from 113.4 last quarter. The NZD/USD pair is currently trading at 0.7259. We now expect support to hold on moves approaching 0.7240 while any upward push will likely meet resistance around 0.7329.

Great British Pound
The Great British Pound broke lower through trade on Monday, ending a multi-day rally that saw Sterling touch 15 month highs. Sterling slumped back below 1.36 after BoE Governor Mark Carney suggested Monetary Policy adjustments would be limited and gradual. The commentary failed to meet the hawkish expectations of some investors and worried those backing a November rate hike. Falling across the board the GBP touched intraday lows at 1.3466 and open this morning at 1.3494 as attentions turn to Wednesday’s retails sales print and FOMC policy meeting for wider direction moving forward.

Majors
The U.S. Dollar was marginally higher in the lead up to the latest Federal Reserve rate decision on Thursday. The U.S Dollar index (DXY) is currently trading at 92.04 at the time of writing and up 0.2% for the day as markets prepare for the possibility that Fed. Reserve Governor Janet Yellen will announce the scale back of its current balance sheet which sits at $US4.4 Trillion Dollars. European CPI figures came in at expectations of 1.5% on an annual basis with the EUR/USD steady at 1.1950. The Greenback rose to a seven week high of 111.66 against the Yen yesterday as Japan observed a public holiday and investors positions themselves for the latest central bank meeting. The CME Fedwatch tool is currently pricing a 62% probability of a further interest rate rise by the Fed reserve by the end of 2017.

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Daily Forex Commentary

Australian Dollar
The Australian Dollar closed the week lower against the US Dollar despite Thursdays strong local labour market data. The AUD/USD pair bounced off lows of 0.7986 and touched a high of 0.8034 as investors remained focused on this week’s upcoming U.S Federal Policy announcement. Hopes that the two-day meeting may provide further hints about the central banks plans for tightening rates caused a shift in sentiment. The Aussie opens just under 80c this morning and with the absence of any local top tier data, the Aussie is likely to find resistance around 0.8050, with support levels at 0.7940.

New Zealand Dollar
The New Zealand dollar closed the week on a strong note against the greenback on Friday reaching a high of 0.7309, up 0.96% for the session. There were no significant data releases on Friday in New Zealand so the rally was on the back of weaker than expected US retail sales and overall market risk sentiment. We are predicting another quiet day ahead in New Zealand with no scheduled data releases. The NZD/USD pair is currently trading at 0.7298. We now expect support to hold on moves approaching 0.7240 while any upward push will likely meet resistance around 0.7329.

Great British Pound
The Great British Pound surged to its highest point since the Brexit vote in June last year to close out last week hitting a high of 1.3615. Opening this morning at 1.3584, the Pound posted an impressive increase of 1.5% as MPC members continued to surprise the market with their hawkish sentiments. The catalyst being MPC Vlieghe, a noted dove indicating that a rate hike is possible in the coming months. On the back of this surprise statement, the Market has now priced in a 65% chance of a rate hike in November, up from a 3% chance last week. The Sterling now looks to its Cable counterpart for further direction this week with a relatively slow domestic economic calendar.

Majors
The greenback rally after a stronger than expected United States inflation print halted on Friday evening. The Latest Retail sales figure fell for the month of August while industrial output saw its biggest drop since 2009 as Hurricane Harvey and Irma expects to have further impacts on the American economy over the coming months. The news sent the DXY lower, closing 0.23% lower for the day with equities flat. The EUR/USD cross tested weekly highs of 1.1985 on Friday evening, falling back to 1.1920 on close as the common currencies next movements will be seen this evening on the release of Eurozone inflation for the month of August. With a risk on environment we saw USD/JPY push to an intraday high of 111.32 before pulling back to 110.80 following the release of American macro data. We expect light on trading today as Japan pauses for a public holiday.

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Daily Forex Commentary

Australian Dollar
The Australian dollar enjoyed mixed fortunes through trade on Thursday as investors toyed with moves back through 0.80 US Cents. The currency rebounded early following stronger than expected labour market data, where in, 54,000 new jobs were added amid strong growth in full time employment and participation rates. The Aussie bounced through 0.80 and touched intraday highs at 0.8016 before softer than anticipated Chinese macroeconomic data sets curb upward momentum and investors squared positions leading into an all-important US inflation print. A steady read in core inflation and an uptick in wider consumer prices bolstered the USD and sent the Aussie back below the psychological 0.80 handle to touch intraday lows at 0.7960. Having corrected upward into the open the Aussie now buys 0.7997 US cents as attentions turn to a raft of US activity indicators headlined by Retail Sales. Watch support on moves toward 0.7960 and profit taking on moves through 0.8010.

New Zealand Dollar
The New Zealand Dollar saw a drop of sixty basis points from its high over the past twenty-four hours as an increase in the United States inflation reading sent the Greenback higher. Opening at 0.7245 against its American counterpart, the 0.72 handle was tested in overnight trading with an intraday low of 0.7185. Losses were eventually paired as investors domestically focus on the upcoming election where the latest opinion poll showed a 4% lead by the Labour Party. The New Zealand dollar opens this morning at 0.7230 ahead of the latest release of the Business NZ Manufacturing Index

Great British Pound
The Great British Pound contained its upward trajectory against the USD dollar touching a fresh one year high of 1.3405 as the Bank of England Governor Mark Carney said in an interview that the possibility of a rate hike has increased. As widely expected the BoE kept UK interest rates at 0.25% but the hints of rise caused the Pound to rally by as much as 1% against the Greenback. With unemployment reaching 42-year lows and signs of household consumption stronger than expected, If the economy continues to strengthen, we could see a rise as early as December.

Majors
The greenback got a limited boost from local data overnight as the consumer price index rose by 0.4%, versus the 0.3% expected, in the month of August on a seasonally adjusted basis. Core CPI (YOY) came in at 1.7%, matching July's figure, but above the 1.6% estimated. Acceleration of inflation may force the FOMC members to vote in favour of another interest rate hike in December and that will add further strength to the greenback. Looking ahead tonight and attentions will turn to monthly U.S. Retail Sales for August with market expectations of a 0.3% increase in headline retail sales.

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Daily Forex Commentary

Australian Dollar
The Australian dollar tracked sideways through much of the domestic trading session on Wednesday holding onto to gains above 0.80 U.S cents. With little domestic data on hand to drive direction investors seemed content in managing positions ahead of a busy macroeconomic docket. Having touched intraday highs at 0.8044 the AUD then suffered at the hands of renewed USD demand. Reports Trump and republicans are attempting to fast track key tax reforms, chasing a bipartisan agreement to ensure support and success through the house bolstered the world’s base currency and fostered widespread gains across most major currency counterparts. Slipping back below 0.80 and opening this morning at 0.7984 attentions turn to key domestic labour market data and headline U.S inflation numbers for direction into Friday and the

New Zealand Dollar
The New Zealand Dollar maintained its sideways range over the past twenty-four hours as it again could not push through the 0.73 handle against the US Dollar. Opening at 0.7285, the Kiwi saw an intraday high of 0.7303 after a stronger NZ FPI number in the morning before pulling back to 0.7220 on broader greenback strength in overnight trading. With a lack of domestic data, markets will focus on the upcoming Inflation reading in the Unites States as the New Zealand Dollar opens this morning at 0.7245.

Great British Pound
The Great British Pound treaded water in overnight trading, oscillating between a low of 1.3186 and a high of 1.3328 to open this morning stagnant at 1.3205. With the broader narrative of the Bank of England reviewing their monetary policy on the cards tonight, Traders have taken a wait and see approach this morning with the Sterling trading within a tight range. Despite strong inflation data and a fall in unemployment, the UK experienced slow wage growth further exacerbating consumer spending numbers and undermining the case for interest rate tightening. While the Bank of England is expected to hold interest rates at 0.25% tonight, pundits look forward to a potentially important Policy Statement for direction on the domestic front.

Majors
The greenback closed marginally higher again overnight when valued against most of its major rivals. The greenback rallied following the lead of US Treasury yields and President Donald Trump's promise of lower corporate taxes. There was no official announcement from the President with all messaging coming from President Donald Trump’s twitter account. Yesterday the only U.S. data release was monthly producer price index. U.S. producer prices rebounded in August driven by a surge in the cost of gasoline. The result was below market's expectations albeit lifting by 0.2%. All attentions now turn to the release of today’s consumer price report for August which should be stronger with Hurricane Harvey driving up gas prices last month. A strong result could certainly extend the USD rally.

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Daily Forex Commentary

Australian Dollar
The Australian dollar held a relatively tight 50-point range through much of Tuesday having found support on moves toward 0.80 U. S cents. With little macroeconomic data to steer direction the Australian Dollar bounced between intraday lows at 0.8001 and session highs at 0.8050 as investors simply squared positions and risk appetite crept back into the market. Despite easing tensions with North Korea and the softening of Hurricane Irma investors were wary of extending USD gains. The bearish channel remains intact and CPI inflation data poses a significant risk to short term positioning. Attentions remain squarely fixed on Thursday Domestic labour market print and U.S inflation read as key markers and possible catalysts driving an immediate directional shift.

New Zealand Dollar
The New Zealand dollar moved higher in the domestic session yesterday, benefitting from the latest opinion polls in the lead up to the general election on September 23rd. Opening at 0.7250 against its American counterpart, the Kiwi drifted off to an intraday low of 0.7220 before surging higher after the Newshub poll suggested an increase in lead for the National Party to 47.3%. The NZD/USD cross hit eventual highs of 0.7320 rallying a full cent. The New Zealand dollar opens at 0.7285 ahead of the latest Food Price Index figures due for release this morning.

Great British Pound
The Great British Pound found upside when valued against its US counterpart over the past 24 hours, trading as high as 1.3298 versus the US Dollar a level not witnessed for one year. The main catalyst for the move was a jump in the inflation rate more than markets had forecasted, according to the Office for National Statistics the rate jumped from 2.6% to 2.9% last month which puts pressure on the Bank of England to start tightening their monetary policy rate. The GBP/USD pair may continue to find support with today’s release of UK Average Earnings Index and the Unemployment rate, investors are hoping to see a rise in average earnings in July of 2.3%.

Majors
The greenback closed marginally higher again overnight when valued against most of its major rivals. The greenback rallied following the lead of U.S. stocks as the mood stayed positive on global markets overnight. The S&P500 closed at a new record high on Tuesday. The index closed the session at 2,496.48, a gain of 0.3 percent, notching intraday and closing records. In other US news overnight damage estimates for Hurricane Irma, a storm that was once a Category 5 hurricane, were broadly lowered. Today on the US macroeconomic calendar will see the release of monthly US Producer Price Index (PPI) for August. In the Eurozone we saw a very quiet night with no data releases. Today will be similar with the only release of monthly German Inflation for August. The EUR/USD currency pair reached an overnight low of 1.1926, currently trading at 1.1966. We now expect support to hold on moves approaching 1.1920.

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Daily Forex Commentary

Australian Dollar
The Australian dollar edged lower through trade on Monday in what was a lacklustre session for macroeconomic drivers. With little to spark direction the AUD succumb to profit taking as renewed demand for risk sparked an increased push for the USD. Hurricane Irma’s downgrade to a Tropical Storm dampened expectations of a significant downturn to national GDP while North Korea did not perform further nuclear test at the weekend. The Aussie moved back through 0.8050 but found support having touched intraday lows at 0.8019 and opens this morning buying 0.8030 U. S cents. With resistance now forming as support at 0.8030 attentions turn to middle level U.S employment data ahead of key labour market data Thursday.

New Zealand Dollar
The New Zealand dollar trend ticked higher as risk sentiment improved in overnight markets. Opening at 0.7245 against the US Dollar, the Kiwi reached intraday highs of 0.7295, unable to sustain its rally through the 0.73 barrier. With stronger movements in the US Dollar in offshore trading, the NZD/USD cross eventually settled lower, pairing gains for the day. The New Zealand dollar opens slightly higher this morning at 0.7260 with a lack of domestic data on the horizon.

Great British Pound
The Great British Pound struggled to mount any significant directional momentum through trade on Monday against the Greenback bouncing off lows of 1.3161 and highs of 1.3222. With little in the way of economic releases the pair remained in a relatively tight range as markets anxiously wait for the important House of Commons vote. As part of the Brexit process, MP’s will be voting on an EU repeal bill that will transfer powers across the UK, the UK government has warned of a chaotic Brexit if lawmakers do not back the bill. Tonight sees the release of UK CPI and PPI, CPI is expected to come in 2.8%, a softer than expected result could see investors sell GBP with a view that the Bank of England will put on hold any near-term rate increases.

Majors
The greenback edged higher overnight in a broader USD recovery against most of its major rivals as risk appetite returns. The rally was driven by optimism among investors as Hurricane Irma damages would be far less than initially first reported. The S&P500 started the week by rising by more than 1% for the first time since August 12 on high trading volumes, to close just off its record high. Looking ahead today and the macroeconomic calendar is empty with no major releases in Europe and the US. The EUR/USD currency pair fell overnight to a weekly low of 1.1947. The EUR/USD pair is currently trading at 1.1957. We now expect support to hold on moves approaching 1.1900 while any upward push will likely meet resistance around 1.2030.

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Daily Forex Commentary

Australian Dollar
The Australian dollar surged through trade on Friday touching fresh two year highs as the U.S dollar met renewed selling pressures. The world’s base currency tumbled as investors again revised expectations for interest rates while increasing tensions with North Korea and the ravaging effects of hurricane Irma weighed heavily on investors demand for risk. The Aussie dollar moved through key technical resistance at 0.8030/40 and touched intraday highs at 0.8121 before profit taking saw a correction into the close and we open this morning buying 0.8050 U.S Cents. Attentions today will likely remain with wider risk trends as the domestic macroeconomic docket offers little to spark direction with focus turning to key U.S inflation and detail sales data due Thursday and Friday.

New Zealand Dollar
The New Zealand peaked on Friday for a weekly high of 0.7335 at the close of the domestic session after an intraday rally of 1.5%. The morning saw a lift in manufacturing sales for the quarter spurred on by an increase in the volume of meat and dairy products. The Kiwi fell from its monthly high in offshore trading as tensions continue between the United States and North Korea. Safe haven plays saw the NZD/USD fall through the 0.73 handle and close the week at 0.7260. With a lack of domestic data on the horizon, investors focus on the upcoming NZ general election on September 23rd as Labour currently holds a small lead in current polls. The New Zealand dollar opens this morning at 72.45 US cents.

Great British Pound
The Great British Pound gained a healthy 2.5% against the Greenback last week despite a flurry of macroeconomic data released on Friday painting a mixed picture of the UK economy. UK manufacturing output grew at the fastest pace this year with a rise of 0.5% while Industrial Production increased by 0.2% - in line with expectations. However, Construction Output suffered a bigger fall of 0.9% which was larger than economists had forecasted, the fall was mainly driven by a £95M decline in private house building over the month. Meanwhile the UK Trade deficit narrowed to £11,58 billion in July, beating expectations for it to widen. The GBP/USD rate touched a high of 1.3224 in the European session and GBP/EUR near three-week highs of 1.0976. Looking ahead, a quiet day on the release front until tomorrow with CPI and PPI due for release. On the technical front, support lies at 1.3115 followed by 1.3000 with the pair seeing resistance at 1.3270.

Majors
The Greenback continued to succumb to broader weakness on Friday as investors responded to the amended expectations for the Federal Reserve's rate hike path with the probability of a Fed rate hike in December now diminished. The EUR/USD pair finished the week on a yearly high of 1.2092 after the European Central Bank left rates and the QE program unchanged. Fairly quiet day ahead on the macroeconomic calendar with the only scheduled release monthly Italian Industrial Production for August. The EUR/USD pair is currently trading at 1.2014. We now expect support to hold on moves approaching 1.2010 while any upward push will likely meet resistance around 1.2070.

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Daily Forex Commentary

Australian Dollar
The Australian dollar’s upward trajectory continued through trade on Thursday edging through a point of key technical resistance and touching intraday highs at 0.8050. A decline in domestic retail sales and a smaller than anticipated trade balance print did little to dampen demand for the AUD as it remained steady throughout the Australasian session; making multiple attempts to extend beyond the 0.80 handle. The Aussie then found support and moved higher as investors looked to short USD holdings. The Greenback succumb to broader weakness as investors responded to the ECB’s policy announcements and further amended expectations for a December rate hike following the resignation of Fed Vice President Stanley Fischer. As a bystander the AUD took advantage and touched 2 month highs and looks poised to break the peak enjoyed throughout the July uptick. Attentions now turn to RBA Governor Lowe for monetary policy commentary while Chinese inflation data and Canadian labour market conditions dominate the offshore docket.

New Zealand Dollar
The New Zealand dollar rallied strongly through trade on Thursday touching intraday highs at 0.7242 and regaining much of the losses suffered early in the week. After a lacklustre domestic session wherein supports at 0.7190 were again tested the Kiwi moved higher, benefiting from broadside USD weakness. Greenback softness in response to the ECB’s policy announcement and the lingering impact of the BoC’s surprise rate hike, when coupled with a declining expectation the Fed will tighten monetary policy conditions in December all forced investors to short USD holdings enabling further upside across its G-10 counterparts. Opening this morning at 0.7230 the NZD gave up more ground against the AUD breaking below 0.90 and touching 0.8980.

Great British Pound
The Great British Pound jumped higher Thursday, surging through 1.31 for the first time in 5 weeks. An improvement in house prices and broader USD weakness helped fuel support for the embattled unit and saw it touch intraday highs at 1.3116. Sterling joined G-10 counterparts in extending gains against the US dollar as the worlds base currency suffered losses across the board. Despite the gains enjoyed against the USD, the Pound moved lower against the Euro touching intraday lows at 1.0868 as ongoing Brexit negotiations continue to weigh on GBP as attentions turn to domestic manufacturing data for direction into the weekend.

Majors
The Euro hovered around the 1.19 level for most of the early Asian session before the ECB‘s president caused EUR/USD to rally. Defying warnings from Mario Draghi in his Press Conference that a stronger euro could have negative consequences the bulls pushed the EUR/USD through the 1.20 level to touch an eventual high of 1.2059. A higher dollar can lead to an increase in imports which ultimately can weigh on inflation, something the ECB is closely monitoring. With the ECB’s current purchase program due to end in December, they have not yet decided how to proceed next year. Meanwhile in the U.S, initial jobless claims rose from 236k to 298k last week, this was the highest since 2015 and could have been impacted with Hurricane Harvey.



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