Rosentray's Daily Commentary

[rosentray]

EUR/USD continued trading to the downside today. Market had a calm European session and entered into the US session at around 1.0660.

 

[rosentray]

GBP/JPY posted new gains today whilst the Yen appreciated against its major competitors. The pair reached just a few points shy from 142 and is now trading at 141.55.

 

[rosentray]

EUR/USD's next week should be interesting!

 

[rosentray]

Gold had a strong week last week when it reached close to $1,250. The precious metal now has a positive outlook as we enter into the second half of the month.

 

[rosentray]

EUR/USD is trading relatively unchanged today gravitating towards 1.0625. The pair would face high volatility this week due to important financials tomorrow and on Wednesday.

 

[rosentray]

USD/JPY is in the middle of its downward short-term trend in today's preopen European hours. The pair is now 113.68 and is caught between support at 112.00 and resistance at 115.00. The trend shows that the pair progressively weakens and therefore we can expect the resistance to change the direction back from the correction wave to the downside.

However, we should not undermine market's strength amid strong US expectations and so, USD/JPY can make an attempt to go above short-term resistance and reach mid-term resistance at 118.60.

We don't have any major news scheduled for today, but the next two days are packed with financials such as Chair Yellen's speech before senate on Tuesday and the Consumer Price Index on Wednesday.

 

[rosentray]

EUR/USD looks more optimistic as we enter into the European session today. The pair is now 1.0623 as we have exciting news later today - a speech by Chair Yellen.

 

[rosentray]

CAD/JPY is trading right about between resistance and support in the shot-term outlook. The pair registered a move to the upside in the beginning of the month and has now reached immediate resistance in the face of 87.00

Short-term resistance is seen at prior highs at 88.80, while short-term support awaits at 84.78, the two latest lows.

The pair is expected to continue trading in that range due to low volatility and fundamentals. During the consolidation period, market participants would most probably wait for a break out of either sides before making their decision. However, the predominant trend is bullish with strong resistance at 89.00.

 

[rosentray]

EUR/USD is lower today due to Yellen's speech yesterday. The hawkish tone drove investors back to the US currency and now EUR/USD is trading at 1.0555.

 

[rosentray]

Fed Chair Janet Yellen made a statement yesterday that FED policy makers don't need to wait on Trump's tax cuts in order to raise rates. She also made the announcement that there would be three raise rates this year, the first could be expected in March.

The speech gave the markets a wake up call as bonds sold off and US equities rallied to new highs.Dow Jones reached 20,535 and the S&P reached 2,338.

The hawkish attitude towards the market could be regarded as concerning to the risk management in infrastructure spending, tax reduction and Trump's policy implementations.

Yellen will be questioned today on House Committee.