Free Trial

JPY Fading Last Week's Gains

FOREX
  • JPY is fading early Tuesday, with USD/JPY touching the week's best levels and continuing to work its way through the pullback from last week's highs. This keeps the cycle best at Y136.71 in view over the medium-term, with the RSI fading back below the technically overbought levels seen early June.
  • Commodity markets have been the movers so far Tuesday, with oil, precious metals and iron ore posting sizeable gains and underpinning the CAD, AUD strength into the NY crossover. USD/CAD weakness has put the pair at the lowest levels since June 13th, narrowing in on the 50-dma support at 1.2811.
  • The single currency is mid-table, despite ECB's Kazaks this morning arguing in favour of a 50bps hike at the upcoming ECB July meeting. Lagarde argued a different path however, stating that 25bps should be the base case.
  • US trade balance data takes focus going forward, with wholesale inventories, consumer confidence and S&P Case Shiller house price indices also due. The ECB's Sintra policy forum continues, with appearances from Elderson and Panetta due. Fed's Daly speaks at a separate event.

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.