Three Risk Events and Their Impetus – EUR/USD, Gold and USD/JPY

The Federal Reserve, Bank of Japan and the German election will all impact the broad markets the remainder of this week. The Euro, Gold and the Yen will all face tests of sentiment as the risk events unfold. And the strength of global equities will also create impetus.

The U.S. Federal Reserve & German Election

The Euro will get plenty of attention the next few days and early next week. The U.S Federal Reserve’s Monetary Policy Statement, and the German Election which will be held on Sunday will cause a whirlwind for the Euro.

The Euro continues to test resistance near 1.20 against the U.S Dollar, and patient investors may believe the time is nearing the European currency breaks through the higher barrier and sustains its mid-term strength.

Gold Must Prove its Worth

President Trump’s speech at the United Nations did not trigger adverse trading sentiment, and global equities have certainly been trending upwards.

If equities should stumble over the next few days, and North Korea reacts with another test of its missiles in the near term, Gold’s recent climb could resume. However, speculation remains volatile and the precious metal must prove it can stay above important support around 1300.00 U.S Dollars an ounce.

Nikkei Strength and Yen Weakness Intertwined

The Nikkei Index has powered higher early this week, and if Japanese equities continue to display risk taking the Yen will become quite intriguing.

The Bank of Japan issues its economic outlook later this week, and it is expected to remain cautious in the short-term. The Yen’s recent weakness may continue to attract traders looking for reversals, but the 112.00 level against the U.S Dollar appears vulnerable and will get attention.

In the short term, we believe the Euro may remain positive, Gold will be tested, and the Yen may remain weak. Mid-term and Long-term we are unbiased.

Yaron Mazor is a senior analyst at SuperTraderTV.

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