Rosentray's Daily Commentary

[rosentray]

GBP/JPY is in its fourth day of consecutive gains going from 136.40 to a high of 141.50. The pair reacted to the bullish remakrs made by May in her speech to pursue a hard Brexit. Usually when traders and investors buy the Sterling, they sell the Yen causing it to depreciate against all of its peers.

In the case of GBP/JPY, market participants favored the Sterling and what we currently observe is the continuation of the move that started a few days ago. The short-term outlook looks bullish only if bulls manage to push through the 200SMA that is occurring in current market price. A few attempts have proved successful in the near-past so bulls still have the advantage.

On the other hand, the inauguration of Trump might turn out to be a bearish signal for the US dollar, as we already saw a 10% rise in US equties and it's unlikely that the move can hold on much longer. In light of this, what could be happening is buy the election, sell the inauguration, in which case, the Yen might again start to appreciate.

In other news, in less than a day we will witness how Trump becomes President! Markets are anticipating the historical event and high volatility can be expected.

 

[rosentray]

EUR/USD is trading absolutely unchanged since yesterday's level around the 1.0660 level. The pair appears to be anticipating the Inauguration of Donald Trump as President of the United States of America. High volatility can be expected and traders are advised to use low leverage and small positions as market can go either way.

 

[rosentray]

EUR/USD is in its third day of consolidation at 1.0660 as market participants are cautious of the upcoming Inauguration of Donald Trump. High volatility remains the main factor that can take over the markets today.

 

[rosentray]

USD/CHF is trading down today going below 1.0100. The pair is now 1.0060 as traders and investors have paused their buying and selling to witness the Inauguration of the 45th President of the US.

 

[rosentray]

Gold has been having a good start of 2017 with price up $70 from $1,149 to $1,219. The latest high came last week when Trump was officially inaugurated as the 45th President of the USA. Since then, Gold has had some troubles pushing higher and made a low at.$1,210. Price is now $1,211 and it would take a fresh touch backed by fundamentals in order for the pair to continue North.

What's somehow worrisome for the Gold bulls is that Gold has reached the prior high level at $1,220 and retraced back below it thus forming a short-term double top. As of now, the double top is confirmed and market can try to go below the support level at $1,195.

If the precious metal reaches $1,200 bulls may consider this a buying opportunity and support the price. On the other hand, a breach below that level could indicate that bears are taking control over the market.

 

[rosentray]

EUR/USD is trading higher today. After Trump was officially inaugurated as the 45th President the US dollar depreciated slightly against the Euro. Current market price is 1.0732 in the early European trading hours.

 

[rosentray]

The Sterling made an impressive rally in less than two weeks going from a low of 1.5734 to a high of 1.6618. The rally started on the day when Theresa May, Britain's Prime Minister, made the announcement to withdraw from the single EU market and leave the EU in the "hard way". The speech turned out positive for the Sterling as investors saw a future of stable and growing independent UK economy.

GBP/CAD was the pair that rallied the most out of all Pound pairs. This rally, however, might have come to a halt as price has now retreated to lower levels. The consolidation comes at a time when fundamentals are yet to reveal the near-term consequences of the policies performed by the UK government. Theresa May will be meeting with President Trump to discuss better UK-US relations in terms of trade, travel and work. These talks might create high volatility in the GBP/USD pair which can spread across various other GBP pairs.

 

[rosentray]

EUR/USD is trading at resistance in today's early European hours. The pair made a high of 1.0780 and is now gravitating towards the 1.0750 level. Bears have the advantage as price has reached resistance. Bulls need to go above 1.08 so that the upward trend could be confirmed.

 

[rosentray]

The Euro has been depreciating against its counterpart the Norwegian Krone. In the past few days the pair took a turn South and reached a low of 8.9470. Currently the pair is trading at 8.9522 and falls below the support line which rests at 8.9830.

The Euro bulls would need something strong and optimistic out of Draghi to keep them going, otherwise the single European currency is bound to fall.

EUR/NOK may find immediate support a bit lower than current level at 8.9200 which would form a fourth bottom with the last three dips to that level.

Market sentiment remains bearish for the pair with 200SMA above price as another factor contributing to devaluation of the EUR/NOK.

 

[rosentray]

The euro reached a high of 1.0775 against the dollar in yesterday's session and is now trading slightly below that level at 1.0750. Short-term resistance is seen at 1.08, while first support rests at 1.0720.