EUR/USD looks to FOMC, US yields – Danske Bank

The pair remains weak and vigilant on the upcoming release of the FOMC minutes while higher yields should also collaborate with the downside pressure according to Jens Sorensen Chief Analyst at Danske Bank. Key Quotes EURUSD is under continued downward pressure as the USD weakness trend has been challenged by a continued uptick in US yields whereas the latter has until recently been driven by rising US inflation expectations we may be starting to see the first signs of the market pricing the Fed slightly [read more]

GBP/USD headed to psychological resistance at 1.4000? - Commerzbank

Karen Jones Analyst at Commerzbank notes that the GBPUSD pair remains poised to challenge the psychological barrier at 1.4000 but markets seem wary of failure at the last. Key Quotes GBPUSD spiked higher on Tuesday various intraday divergences suggest consolidation ahead of a move to psychological resistance at 1.40. We note the 13 count on the weekly chart and are wary of failure here. The market stays immediately bid above the 1.3512 2 month uptrend. We would allow for a retracement to [read more]

EUR/USD: remains on course to challenge the 1.2432 - Commerzbank

Karen Jones Analyst at Commerzbank offers a technical view of the EURUSD pair and foresees an extension of the current bullish trajectory in the nearterm. Key quotes EURUSD remains extremely bid very near term and has started to erode the 1.2066 pivot line. It remains on course to challenge the 1.2432 200 month ma. Support should be offered by the 1.2092 September high and the 20 day moving average at 1.1998 the market will remain immediately bid above here. Below 1.1998 [read more]

Goldman Sachs: Growth is bigger Fed-hike factor than market thinks - BBG

Goldman Sachs economists led by Jan Hatzius wrote in its latest note [read more]

GBP/JPY at 4-day high, but risk reversals hit 9-day low

GBPJPY extended yesterdays 200pip rally to a fourday high of 152.64 in Asia on reports that reports that the UK Ireland and the EU are working through the night to try and reach a breakthrough on Brexit negotiations.A formal announcement is expected today. Hence Sterling is trading higher across the board. Still investors are cautious which is evident from the drop in the risk reversals gauge.The onemonth 25 delta risk reversals gauge dropped to 1.25 yesterday the lowest since Nov. 29. The decline indicates increased (hedge) [read more]

USD/CHF downside pressure mitigated above 0.9911 – Commerzbank

In opinion of Karen Jones Head of FICC Technical Analysis at Commerzbank [read more]