Eur/Usd $1.1797 (-$0.0017)
Eur/Usd opened in Asia at $1.1814 towards the upper end of Monday’s range. We began the session little changed with the pair struggling for direction before rising to today’s high of $1.1824. An improvement in risk sentiment as US-North Korea tensions look to have taken a breather, coupled with comments from US President Trump who delivered a speech on the US’s strategy for Afghanistan, the pair fell to $1.1801. Despite earlier comments from a US official who said that Trump signed off on sending an extra 4000 troops to Afghanistan, Trump declined in his speech to comment on specific numbers of troops that will be deployed or on plans for further military actions. Meanwhile, US Defence Secretary Mattis said President Trump has provided strategic guidance for US-South Asia strategy after a rigorous interagency review, adding he has directed joint Chiefs of Staff to make preparations for the strategy to be carried out. The pair have since fallen to a fresh low as we approach the European open, trading at today’s low of $1.1797. From a technical view, the August 11th high at $1.1846 forms our first resistance level before the August 2nd high at $1.1909. On the downside, yesterday’s low at $1.1729 and Friday’s low at $1.1705 are in focus.
Gbp/Usd $1.2873 (-$0.0026)
Cable opened in Asia at $1.2896 towards the upper end of Monday’s range. We began the session on the front foot, rising to today’s high of $1.2909. Amid the improvement in risk sentiment and US President Trump’s speech, the pair came under pressure. Cable has since set a fresh low of $1.2873 as we head into the European open with the pair remaining around the level. From a technical view, yesterday’s low at $1.2847 forms our first support level before Friday’s low at $1.2829. On the upside, the August 11th low at $1.2937 and August 15th high at $1.2970 are in focus.
Usd/Jpy ¥109.29 (+¥0.32)
Usd/Jpy opened in Asia at ¥108.96 around midway of Monday’s range. We began the session on the back foot, slipping to today’s low ¥108.86. The pair hit a high of ¥109.33 as the Yen snapped a four day winning streak as the session wore on with a notable improvement in risk sentiment. As we approach the European open, the pair are still trading around the highs at ¥109.29. From a technical view, Friday’s low at ¥108.58 forms our first support level before the April 18th low at ¥108.29. On the upside, Friday’s high at ¥109.59 and last Wednesday’s low at ¥110.00 are in focus.
Gbp/Eur €1.0914 (-€0.0002)
Gbp/Eur opened in Asia at €1.0916 towards the lower end of Monday’s range. We began the session on the front foot, rising to today’s high of €1.0922. The pair came under pressure as the session wore on, falling to today’s low of 1.0909. The pair have eased off the lows as we approach the European open, trading €1.0914. Beyond yesterday’s low, we look for support at the October 29th (2009) low at €1.0818 followed by the October 15th (2009) low at €1.0704. On the upside, yesterday’s high at €1.0975 and Friday’s high at $1.0998 are in focus.