The Euro has come under early pressure in the wake of the Catalonia referendum. The Pound is also battling headwinds, but a Construction PMI report will come from the U.K today.
EUR/USD: Catalonia Fallout Potential
The Euro has fallen below 1.18 against the USD in early trading this morning. While the European currency’s move may be part of its range from the past week, nervous traders may be fearful for knock-on effects caused by fallout from yesterday’s pro-independence referendum in Catalonia, Spain. The Euro should be treated carefully today by investors.
Gold: China Holiday Might be a Factor
Gold has lost value again as trading has resumed. China is on holiday this week and this may reduce some buying speculation. The precious metal is near important support around 1270.00 U.S Dollars an ounce and may continue to face pressure in the short-term.
GPB/USD: Pound Battling Headwinds
The Pound continues to battle headwinds. The British currency is near 1.3360 against the U.S Dollar. Manufacturing statistics will come from the U.K today, but traders may be taking their cues more from sentiment generated by Bank of England Governor Carney. The Pound may continue to be pushed back short term.
USD/JPY: Yen Remains Weak
The Yen has been firm this morning as it has maintained its weaker range around 112.75 against the U.S Dollar. The Nikkei Index has put in slight gains this morning and the Tankan Manufacturing Index was better than expected. The Yen could continue to remain weak.
Crude Oil: Reversal Opportunities for those with Patience
Crude Oil is near 51.50 U.S Dollars a barrel. The commodity has had a good run upwards the past few weeks but has started to run into consolidation. Meaning traders may start looking for reversal opportunities in the short term if they have patience.
Yaron Mazor is a senior analyst at SuperTraderTV.
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