EURUSD

The pair extended its range to the downwards in the wake of the fresh quarter, but not went too far. When will it make the break? A key German survey is significant for this week. Talk about ECB tapering triggered a move in pairs but this did not last. It is unsure if the ECB will taper bond buys ahead of ending the program, start tapering in March or if they have even discussed this. With low inflation, the ECB’s QE might run and run. Euro-zone PMIs comes out mostly as anticipated. Data in the US was better than a forecast of missing on the NFP did not hurt the greenback’s movement, notably, as other numbers were more upbeat. The euro was pushed down by pound flash crash among speculation the euro might be next. The pair unlocked the quarter with an attempt to jump higher, over the 1.1230 level hints earlier week but it eventually fell, even temporarily soaked below 1.1125 levels.

 

The euro might be next, following the tumble down of the British pound. It is significant to remember that Brexit causes the EU being left out by the UK, and not only an event damaging to UK. Further, the ECB is set to widen QE and the Fed has well enough data to raise rates. EURUSD turns from Neutral to Bearish this week.

 

GBPUSD

 

The pair plunged previous week, as the pair fell 500 points and finished at 1.2422 levels. The pair briefly fell down under the symbolic level of 1.20 ahead of reversing directions. It’s a very quiet week, with just only 3 events on the calendar. The pair experienced a “flash crash” on last week Thursday, driving the pound to a fresh Thirty-one-year low of 1.1943. On the publishing front, British figures were positive. All three PMI reports were better than forecast and Manufacturing Production placed  some small gains, finishing a nasty streak of three straight reduces. 

 

The pair unlocked the week at 1.2929 levels and rapidly reached a high of 1.2946 levels, as support held at 1.2902 levels. It was all downhill from there, as the GBPUSD briefly fell to 1.1943 ahead of rebounding. The pair ended the week at 1.2422 levels. The markets have been anxious regarding Brexit for months, despite decent UK figures in the Q3. With the pound quickly sagging previous week, weak market sentiment might send the currency to fresh Thirty-year lows. GBPUSD remains Bearish.

 

USDJPY

The pair placed solid gains of 120 points, as the pair finished at 102.79 levels. There are 8 events on the schedule this week. In the US, NFP drops short of expectations, but this did not hurt the greenback’s force, notably as other wage growth and jobless figures were more positive. In Japan, there was no amazement from the key Tankan indices, both of which met anticipations. 

 

The pair unlocked the week at 101.53 levels. The pair cut down to a low of 101.20 levels early in the week.  After that, the pair reversed its directions and mounted to a high of 104.16 levels, as resistance held firm at 104.25 levels mentioned earlier week. The pair finished the week with sharp losses and clogged the week at 102.79 levels. The BoJ seems unwilling to implement additional monetary easing, but the yen has still jump downwards. US figures have usually been positive, so a December rate hike stands on the table, which is bullish for the greenback. USDJPY stays Bullish for this week.