MUFG’s Teppei Ino notes that USD/JPY has fallen below the bank’s 155 forecast floor, briefly trading under 154.50 and testing key Fibonacci retracement levels.
Silver prices (XAG/USD) fell on Tuesday, according to FXStreet data. Silver trades at $65.88 per troy ounce, down 0.55% from the $66.24 it cost on Monday.
Michael Pfister at Commerzbank highlights that the Mexican Peso has strengthened, with USD/MXN back below 17, helped by a weaker Dollar and Mexico’s strong performance among major currencies.
The Australian Dollar (AUD) is down 0.13% to near 0.7210 against the US Dollar (USD) during the European trading session on Tuesday. The Aussie pair comes under pressure as the US Dollar turns positive after a weak start.
Dow Jones futures fall by 0.92% to trade near 52,950 during European hours on Tuesday. Meanwhile, S&P 500 futures decline by 0.41% to trade below 7,700, while Nasdaq 100 futures lose 0.24% to trade below 29,500.
Societe Generale analysts note EUR/HUF is trading within a base formation but continues to struggle with the 200-day moving average around 371, seen as crucial resistance.
The GBP/JPY cross continues to lose ground for the second straight day – also marking the fourth day of a fall in the previous five – and drops to the 207.00 neighborhood, or a fresh year-to-date (YTD) low earlier this Tuesday.
The New Zealand Dollar extends losses against the US Dollar (USD) on Tuesday, weighed by the risk-off mood amid escalating tensions in the Middle East and rising Oil prices.
Danske Research Team reports that softer-than-expected Swedish August inflation reduced market pricing for a September Riksbank rate hike. CPI, CPIF and CPIF-XE all undershot the bank’s forecasts, with the downside surprise described as broad-based.
Nomura’s FX strategists note that recent AfD gains in German regional elections have had little impact on EUR/USD so far, as markets see them as local events with limited national implications.
The US Dollar (USD) recovers its early losses and turns marginally positive during the European trading session on Tuesday. At press time, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades marginally higher to near 98.95.
OCBC’s Christopher Wong highlights that USD/JPY has broken below 155 and accelerated towards the low-154s as expectations for faster BoJ policy normalisation build, with markets nearly fully pricing a 25bp hike next week.
USD/IDR depreciates after two days of gains, trading around 17,670 during European hours on Tuesday. The pair loses ground as the Indonesian Rupiah (IDR) is drawing support from positive economic sentiment following reassuring remarks from Finance Minister Purbaya Yudhi Sadewa.
DBS Group Research notes that after earlier rupee outperformance driven by intervention and inflows, USD/INR has settled around the mid-94 handle.
Silver (XAG/USD) is trading flat at the $66.00 area on Tuesday, holding minor gains on the weekly chart after bouncing from the mid-range of the $64.00s last week.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – attracts follow-through buying for the second straight day and climbs to its highest level since July 23 during the early part of the European session on Tuesday.
Here is what you need to know on Tuesday, September 8:
ING’s Frantisek Taborsky highlights that Hungarian inflation rebounded to 1.3% in August but stayed below expectations and the NBH’s forecast, with price growth seen remaining under target this year.
The Euro (EUR) claws back some of its early losses against the Japanese Yen (JPY) during the European trading session on Tuesday. At press time, EUR/JPY is down 0.3% to near 178.85 even after recovering from its intraday low of 177.85.
Danske Bank notes European equities were broadly flat on Monday, with the Stoxx 600 unchanged and OMX Nordic slightly higher, while Asian markets rallied in thin trading as US markets were closed for Labor Day.
The Euro (EUR) extends losses for the third consecutive day against the British Pound (GBP) on Tuesday, as German Trade Balance data added to evidence of the frail recovery of the Euro Area's leading economy.
The USD/CHF pair flatlines near 0.8090 during the early European trading hours on Tuesday. Traders brace for crucial US Producer Price Index (PPI) and Consumer Price Index (CPI) inflation data later this week.
The Canadian Dollar (CAD) trades higher against the US Dollar (USD) on Tuesday. The USD/CAD pair is down 0.25% to near 1.3780 at the time of writing as the Loonie outperforms due to surging oil prices.
OCBC’s Christopher Wong notes EUR/USD is holding near 1.16 as a softer US Dollar (USD) and firmer Euro-area data offset higher Oil prices.
The Euro (EUR) is practically flat against the US Dollar (USD) on Tuesday, after giving back previous gains, following the release of German Trade Balance data.
MUFG’s Michael Wan notes the Japanese Yen has strengthened below 154 against the US Dollar (USD), its firmest level since February, as markets price faster Bank of Japan tightening.
The AUD/JPY cross trades in negative territory around 110.75 during the early European trading hours on Tuesday.
The Indian Rupee (INR) retreats from its two-month high against the US Dollar (USD) on Tuesday.
EUR/JPY loses ground for the second consecutive day, trading around 178.40 during the Asian hours on Tuesday. Technical analysis of the daily chart indicates the currency cross remains within the descending channel pattern, signalling a bearish bias.
Gold (XAU/USD) turns lower for the third straight day after a modest intraday uptick and slides below the $4,400 mark during the first half of the European session on Tuesday.
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