Risk appetite has bounced to the forefront this morning in Asia, and buying has been strong early in the equity markets. The strength of the Nikkei appears to have set the tone for a weakened Yen and signs of early strength from the U.S Dollar.
EUR/USD: Euro Pushed Back
The Euro remains above the 1.20 mark against the U.S Dollar early this morning, but it has seen headwinds as resistance continues to show an ability to push the European currency back. The Euro’s strong gains, however, are largely intact and reversals are likely to be part of the trading landscape via technical influences in the near term.
Gold: Headwinds Seen this Morning
Gold has come off of its highs as risk appetite has shown some teeth in the Asian equity markets. The precious metal has fallen below 1340.00 U.S Dollars an ounce and this level could prove to be a focal point today. Traders may be tempted to sell Gold in the coming days on the belief sentiment may improve in the broad markets.
GBP/USD: Is the Pound Overvalued?
The Pound has fallen below the 1.32 juncture against the U.S Dollar in early trading. The Bank of England will conduct their monetary policy meeting on Thursday. The British currency has put in solid gains the past week, and some investors may believe it remains slightly overvalued in the short term.
USD/JPY: Reversal Back to Weakness
The Yen has reversed off of its stronger values this morning. The Yen has broken short term resistance fairly easily this morning as the Nikkei Index has seen a large wave of buying. The 109.00 resistance level will be viewed as a potential target by traders if the Yen continues to show weakness.
Crude Oil: Impact from Storm Subsides
Hurricane Irma’s impact may be less than had been feared and Crude Oil prices in the U.S are likely to turn speculative today. The commodity was sold off late on Friday, but if the damage from this current storm is less than expected, it may allow for U.S supply to function properly sooner than thought.
Yaron Mazor is a senior analyst at SuperTraderTV.
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