Morning brief for November 18, 2016

18 November, 2016

USD/JPY surged above 110.55. The greenback was buoyed after Fed Chair Yellen confirmed that a rate hike could come “relatively” soon. Yesterday the BOJ launched an implementation of its yield curve policy buying JGBs to weaken the yen. Today the bank’s operations were renewed. Another factor that contributes to the strengthening of USD is the rise of the US Treasuries.

PM of Japan Shinzo Abe and future US president Donald Trump are going to meet today. Traders will be watching for any comments from Trump on its policy in relation to Japan and other Asian countries. In the course of his election campaign he was repeatedly accusing Japanese and Chinese governments of currency manipulations threatening to impose tariffs on their imports.

EUR/USD slumped to 1.0620, a low that the pair experienced a year ago. Today traders will be waiting for the ECP president Mario Draghi speech at the 26th European Banking Congress at 10:30 am (Metatrader time). Volatility is usually experienced as he speaks.

AUD/USD slumped below 0.7370 on the Asian session mainly on the USD strengthening.

NZD/USD fell as well. This week was rather “shaky” for New Zealand as it is struggling with damages after huge Monday’s earthquake. Statistics New Zealand did a great job. Its website is listing some of the delayed data that is not officially released (official data releases will commence from Monday). The retail sales report is in line with expectation (+0.9% prior +2.3%), but treat this result with caution until official figures surface.

GBP/USD edged down below the support at 1.2420. Today’s session should be rather smooth for the pound.

USD/CAD rose to 1.3582 (50% Fibo retracement level from January 2016 high). Brent oil futures fell to $46 mark hit by the US dollar’s strength.  


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