Free Trial

Currencies Trade Defensively Ahead of Critical Week

FOREX
  • Markets trade defensively and within recent ranges to mark a muted Monday session so far. JPY is modestly weaker on an intraday basis, while the single currency makes furtive gains.
  • UK growth data came in moderately ahead of expectations, with manufacturing production contracting at a slower pace than forecast, playing in favour of the bullish trend conditions that remain present in GBP/USD. The pair has cleared the 200-dma and maintains a bullish sequence of higher highs and higher lows. Note that moving average studies remain in a bull-mode position, highlighting positive market sentiment. A resumption of gains would open 1.2406, the Jun 16 high.
  • Lastly, commodity-tied currencies have failed to take advantaqe of a minor bounce in equity futures, with the e-mini S&P still within range of the overnight and Friday lows of 3956.00 and 3959.75.
  • The data and speakers slate starts with a lull on Monday, with no key data releases or central bank events ahead of this week's deluge of meetings. As such, the focus for the session ahead will likely be pre-positioning and interpretation of Tuesday's critical US CPI release.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.