EUR/USD – breached the 1.15 level for the first time since August 2015 and continued to move higher. We are currently trading close to the trend line which has proven over time to be important.
USD/JPY – appears to have only one direction and that is down, although we are nearing the first support level mentioned yesterday around the 105.3 level. As mentioned yesterday, the more the JPY strengthens, the more likely an intervention by the BOJ is. This comes as a stronger JPY could jeopardize the economic recovery, something that BOJ Governor Kuroda also mentioned. He also said that the BOJ would expand monetary measures in case its inflation target would not be met.
GBP/USD – is trading practically unchanged from where we were at the beginning of the year. This after seeing a serious drop in the first two month, due to bad data and mainly the fears of a Brexit. With a lot of the Brexit fears dissipating, we see the GBP recover, and quite fast. We are currently trading near the resistance around the 1.475 level.
AUD/USD – has moved sharply down as the RBA surprisingly cut the interest rate to an all-time low. The RBA also kept the door open for another cut later on, so this might not be the only cut we will see the RBA make this year. This comes only a week after we got some disappointing data out of Australia as well, so the RBA is trying to boost the economy with the latest interest rate cut and with it also for inflation to pick up.
IndicesDAX 30 – after reaching the upwards trend line, we have seen a downwards move, which has been continuing until now.
Dollar Index – continued with the pattern I have mentioned in the past with lower lows and lower highs, which is a clear bearish pattern. On Friday we broke below the last low, and currently have created a new low, with still a possibility for more to come.
Gold – broke through the 1300 level amid continued weakness in the USD, but quickly moved back as there was some profit taking. Nevertheless, with the USD remaining weak, we are moving up again, and could well see another attempt to conquer this level.Oil – has moved down, even though the USD continued to weaken. The main reason is that there is an expectation that there will be a significant build in the crude stock and inventories this week. For now the nearest support can be found around the 44.50 level.