Euro and Swiss Franc are currently the strongest ones for the week, but overall markets are relatively mixed. The rise in Euro owes a large part to Sterling’s pull back, as well as Dollar’s weakness for now. While overall risk sentiments are positive, there is no clear strength in commodity currencies. Yen is not soft neither. A focus is now on FOMC minutes, but they would likely just repeat the message that inflation this year is transitory. Also, recent rise in yields is just reflecting improving outlook. Yet, Fed’s ultra loose monetary policy is here to stay for a long time.


Technically, a focus now is whether Euro could sustain the current rebound into a trend reversal. Levels to watch include 1.1988 resistance in EUR/USD, 0.8644 resistance in EUR/GBP and 1.4972 resistance in EUR/CAD. At the same time, Sterling could also be turning into a near term correction, as the fortunate against Euro reverses. Break of 1.2769 support in GBP/CHF would suggest the start of such near term correction too.

source_https://www.actionforex.com/