Forex Morning Briefing

$DXY, $EUR, $GBP, $JPY

Commentary: The release of FOMC’s May dovish minutes seems to have had opposite effects on USD strength and US yields. While a stronger indication of a rate hike in June imparted strength to USD, its tolerance for inflation above 2% pushed yields down. PE

The US Dollar (.DXY) Index at 93.908 re-tested 94 Wednesday marking a high at 94.19. Now seeing a dip to support at 93.3-93.7, and the target at 95 could be tested next week, or the week after that, where it will be capped at 95.

EUR (Euro) at 1.171 dipped and marked a low of 1.1676 Wednesday. The single currency could rise to 1.175. A test of 95 by .DXY in the next 1-2 weeks may imply EUR test to 1.155 or lower.

USD/JPY at 109.64 broke support at 110.5 Wednesday as President Trump’s proposal to impose tariffs on imported cars brought some uncertainty and volatility into the markets. JPY, considered as a safe haven, strengthened. We wait, we see.

EUR/JPY at 128.33 broke support at 129.5 as USD/JPY and EUR both turned extremely Bearish Wednesday. A clear break of 128, make the pair Bearish to 126.

Sterling (GBP) at 1.3366 move to channel support on the daily and broke to a low of 1.3305. It is currently trading slightly higher. GBP could turn more Bearish soon to support at 1.31.

Stay tuned…

.DXY, Bullish, consolidation, CPI, direction, EUR, Fed, FOMC, forex, GBP, inflation, jpy, pairs, range

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.