International Trading
Market Brief
The EURJPY weakened on speculation Japanese exporters took advantage of Yen’s 0.7% slump yesterday to purchase the currency amid growing concern that Japanese policy makers won’t act to stem its advance. Concerns that the Japanese authorities may not take action resurfaced after Dow Jones reported that the BOJ sees no immediate threat to the domestic economy from the yen’s recent gain. Expectations that the BOJ may take action have prevented the yen from rising and if the BOJ fails to take any action, it can add to a momentum to the yen. There could be hurdles in the way of Yen weakening actions by the central bank because the U.S. probably won’t support any intervention to weaken it as a weak dollar would be beneficial in US’s interest to keep their exports rising. The EURUSD fell before U.S. reports tomorrow that may show manufacturing in the Philadelphia region expanded and initial jobless claims fell. The Australian dollar slumped after government reports showed skilled worker vacancies fell 0.3% and the wage price index climbed 0.8% (prev. 0.9%) slowing down in Q2. The EURJPY dropped to 109.64, USDJPY fell to 85.39, EURUSD declined to 1.2842, AUDJPY fell 0.6% to 76.97 and AUDUSD fell 0.4% to 0.9015. The Nikkei 225 pared its advance to 0.2% after rising as much as 1.1% and S&P 500 Index Futures dropped 0.2%.
The Dollar Index rose 0.2% to 82.39 for the first time in three days on speculation reports this week will signal the US will avoid a double-dip recession. The Philadelphia economic index probably rose to 7.2 (prev. 5.1) and Initial jobless claims fell to 478,000 (prev. 484,000) according to reports due out tomorrow. The Bank of England is scheduled to release the minutes of the monetary policy committee’s last meeting today and the minutes are likely to be on the dovish side with some market speculation that quantitative easing was discussed or even voted for by some members.
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Currency Tech
EURUSD
R 2: 1.3250
R 1: 1.3000
CURRENT: 1.2850
S 1: 1.2680
S 2: 1.2540
USDJPY
R 2: 87.20
R 1: 86.80
CURRENT: 85.40
S 1: 85.00
S 2: 84.50
GBPUSD
R 2: 1.5925
R 1: 1.5750
CURRENT: 1.5565
S 1: 1.5525
S 2: 1.5350
AUDUSD
R 2: 0.9200
R 1: 0.9070
CURRENT: 0.9025
S 1: 0.8810
S 2: 0.8725
- S: Strong, M: Minor, T: Trendline, K: Keylevel, P: Pivot
