Investors Await the UK Elections, Central Bank Decisions, and Tariff Deadline

UK ELECTIONS, FOMC AND ECB DECISIONS, TARIFF DEADLINE LOOMING

The dollar traded mixed, but within a ±0.30% range, against the other G10 currencies on Monday and during the Asian morning Tuesday. It gained versus SEK, NOK, AUD and JPY in that order, while it underperformed against CHF, CAD, EUR, NZD and GBP.

GBP/JPY — TECHNICAL OUTLOOK

GBP/JPY is still trading above its short-term tentative upside support line taken from the low of November 22nd. But the rate had distanced itself from that line lately and the pair is now forming something of a symmetrical triangle, which is forcing the pair to coil up. Although we need to wait for GBP/JPY to get out of that triangle pattern first, we will stay somewhat bullish overall, as the rate continues to balance above the aforementioned upside line.

EUR/USD — TECHNICAL OUTLOOK

After Friday’s strong move lower, EUR/USD managed to recover some of its losses made during that day. The pair looks trendless at the moment, as it continues to move around its EMAs. Our oscillators, the RSI and the MACD, are also somewhat flat. For now, we will take a neutral stand and wait for the rate to break through one of our key levels, before we could examine a short-term directional move.

AS FOR TODAY’S EVENTS

During the European session, we get Norway’s CPIs for November. Both the headline and core rates are expected to have ticked down to +1.7% yoy and 2.1% yoy, from 1.8% and 2.2% respectively. With the Norges Bank holding the view that interest rates will most likely remain at the present level in the coming period, a small slowdown in inflation is unlikely to alter expectations around the Bank’s future course of action.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.