Euro, EUR/JPY, Japanese Yen, US Greenback, Fed, Nasdaq, Treasuries – Speaking Factors
- The Euro has been regular because the tide goes out on threat property
- Equities, commodities and growth-related currencies have been hit laborious
- Traders are looking for out secure havens. What does this imply for EUR/JPY?
The Euro continues to carry floor towards a surging US Greenback and Japanese Yen because the carnage from Monday has spilled over into the Tuesday Asian session. Danger property underneath stress throughout the board.
Wall Road tanked with the Nasdaq ending the US money session down 4.29% as threat aversion and better short-term charges proceed to undermine tech shares. The Grasp Seng Tech index was down over 7% at one stage at this time however has managed a come-back since.
Futures markets are pointing a slight uptick for the North American fairness money market open. APAC equities are all struggling at this time.
Treasuries have rallied to start out the week because the run to greater high quality investments picks up steam, whereas the exit from riskier property gathers tempo. The fact of a shrinking Fed stability sheet alongside price hikes is changing into obvious as extra liquidity is withdrawn.
In a real bout of a flight to security and threat aversion, the Japanese Yen was the most effective performing foreign money on Monday, defying its latest and constant depreciation. The Euro and US Greenback additionally gained elsewhere.
Commodity associated currencies of AUD, CAD, NOK and NZD are wallowing at multi-year lows as your complete commodity advanced weakened in a single day. Iron ore and nickel had been hit notably laborious.
Crude oil is decrease once more by way of the Asian session and gold is comparatively regular, close to US$ 1,864 an oz on the time of going to print.
Wanting forward, after the German Zew survey is launched, there might be a plethora of central financial institution audio system. The ECB will see Nagel, Villeroy and Guindos crossing the wires.
Then from the Fed, there might be feedback from Williams, Barkin, Waller, Kaskari, Mester and Bostic. US CPI is due Wednesday.
The total financial calendar might be seen right here.
EUR/JPY Technical Evaluation
EUR/JPY stays above an ascending pattern line however seems to be at a crossroads.
The ascending pattern line additionally dissects with the 10- and 21-day easy shifting averages (SMA). A transfer under these 3 strains might point out that bullish momentum has begun to fade.
If the value stays above these strains, it might counsel that bullish momentum is unbroken for now.
If it had been to interrupt decrease, assist may very well be on the prior lows of 135.52, 134.78 and 134.30.
On the topside, resistance may be supplied on the latest peak at 140.00 or the June 2015 excessive of 141.06.
Chart created in TradingView
— Written by Daniel McCarthy, Strategist for DailyFX.com
To contact Daniel, use the feedback part under or @DanMcCathyFX on Twitter