Eur/Usd $1.1792 (-$0.0005)
A justifiably quiet Asian session as markets laid low in thin trade ahead of twin speeches by Fed’s Yellen and ECB’s Draghi at Jackson Hole. The range in the pair was just 20 pips around the key $1.1800 handle. Besides the twin Jackson Hole speeches, we have Germany’s IFO survey and US durable goods orders on tap. In terms of technicals, Monday’s high at $1.1828 and the August 11th high at $1.1846 may offer resistance while on the downside we look for yesterday’s low at $1.1782 and Monday’s low at $1.1729.
Gbp/Usd $1.2802 (+$0.0003)
The range in Gbp/Usd was also around 20 pips overnight with little interest in the pair amid a lack of UK news and data. Cable clocked a low of $1.2791 before catching a minor bid to $1.2814 but is currently flat as investors await the Fed’s Yellen at Jackson Hole for fresh direction. Meanwhile, looming Brexit jitters remain in focus into the weekend with comments on likely in the Sunday papers which could again catch focus on Monday. From a technical view, yesterday’s low at $1.2770 may offer some support before the June 27th low at $1.2714. On the upside, yesterday’s high at $1.2836 and Monday’s high at $1.2916 are in focus.
Usd/Jpy ¥109.67 (+¥0.13)
Usd/Jpy saw the biggest move in the Asian session. The pair popped into the Tokyo fix which took out offers around ¥109.65 and pushed it up to a high of ¥109.77 amid an improvement in investors’ risk appetite. However, once again Usd/Jpy failed ahead of the key ¥110.00 psychological mark following the BOJ’s move to cut its 5-10 year JGB purchases by another ¥30 Bln. Meanwhile, Japanese CPI traded in line with expectations but still far below the BOJ’s target. From a technical view, Above today’s high at ¥109.77, we look for resistance at Wednesday’s high of ¥109.82 while on the downside, today’s low at ¥109.47 and yesterday’s low at ¥108.82 are in focus.
Gbp/Eur €1.0863 (+€0.0013)
Gbp/Eur is higher this morning, climbing to a intraday high of €1.0872 in recent trade with Euro traders cautious ahead of the speech by ECB President Draghi at the Jackson Hole Symposium later today. However, Draghi is not expected to shed policy cues prior to ECB’s September meeting, and if his speech on Wednesday is any indication, he will also refrain from jawboning the Euro. Besides the Jackson Hole speech, we also get Germany’s IFO survey. From a technical view, we look for support at Wednesday’s low of €1.0826 while on the upside, yesterday’s high at €1.0881 and yesterday’s high at €1.0915 are in focus.