EU Morning Report – JPY weakens, BoJ eases?
Tuesday, September 25th, 2012The euro (EUR) has been weakening against most of its major counterparts, as the absence of new developments increases speculation with market participants favoring the downside. The Japanese Finance Minister Azumi, once more, said that he will not hesitate to counteract to any speculative positions on the nation’s currency. The Japanese yen (JPY) has been strengthening versus both, the US dollar (USD) and the euro (EUR), something an exporting nation such as Japan does not wish. The European Central Bank (ECB) President Draghi is due to deliver a speech in Berlin at 13:00 GMT, as part of an annual event dedicated to German industries.
§ The US Tech (NDQ) is in a search of a catalyst, to challenge its multi-year high at 2868.25, recorded last Wednesday. If the index breaks-and-holds above this level, then higher highs should be expected.
§ The British pound (GBP) has been whipsawing versus the US dollar (USD) just below the 1.6250 area, a major resistance level.
§ OIL has found support above the 90.00 area after plummeting over the past week against the US dollar. The commodity dropped from 100 dollars a barrel to 92, a staggering 8% depreciation.
Stay in tune throughout the day with foreign exchange bullets!
| Outlook | . | Pivot | Preference1 | Sentiment2 |
| . | EURUSD | 1.2910 | LONG @ 1.3820 | 37% of deals buy EUR |
| . | USDJPY | 77.60 | LONG @ 76.55 | 97% of deals buy USD |
| . | GBPUSD | 1.6250 | LONG @ 1.5860 | 33% of deals buy GBP |
| . | AUDUSD | 1.0405 | LONG @ 1.0305 | 38% of deals buy AUD |
| . | GOLD | 1755 | LONG @ 1629.00 | 66% of deals buy GOLD |
| . | OIL | 90.50 | LONG @ 87.00 | 51% of deals buy OIL |
| Calendar | Currency | Time (GMT) | Event | Forecast |
| . | EUR | 07:30 | German Flash Manufacturing PMI | 50.0 |
| . | EUR | 08:00 | Eurozone Flash Manufacturing PMI | 48.1 |
| . | EUR | 09:00 | Eurozone Industrial New Orders for August | 0.1% |
| Movers Shakers | |
| NZDUSD |
New Zealand dollar has appreciated by 3.8% against the US dollar so far this month, with 137 pips (1.7%) coming in last week. This was particularly notable as the previous week saw worst than expected economic data released and in spite that, the Kiwi kept going on strong. The trend may continue or a reversal may occur, but NZDUSD may offer excellent trading opportunities either way this week.
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Written by Easy-Forex
