Forex Daily Recap – Ninja Upshot +0.37%, Entering the Upper Bollinger BandOn the backing of US Q2 GDP that came in-line with the forecasts, the Greenback bulls were testing the 98.57 resistance handle today. Meantime, the Fiber was underway a strong tumbling rally, targeting the robust 1.1027 support handle.
On the technical side, the Ninja has finally made a jump into the upper vicinity of the Bollinger Bands, crossing above the center line. Anyhow, the Parabolic SAR stood just overhead the trading pair, preventing more upside. However, the Stochastics indicator was showing a substantial rise in the buying activity in the trading community.
Earlier today, Bank of Japan board member Hitoshi Suzuki commented that there remains no need for further ease in the monetary policy to dodge recession fears. Suzuki mentioned that any more lowering of the borrowing would significantly hurt the overall consumer sentiment.
“If the BOJ were to consider and implement specific monetary easing measures, it would take action deemed appropriate at the time while weighing the benefits and demerits of each step,” Suzuki said in a speech to business leaders in Kumamoto, southern Japan.
After bouncing off from the underlying red Ichimoku Clouds on August 23, the US Dollar Index continued to uphold the previously accumulated gains. On the backing of US Q2 GDP that came in-line with the forecasts, the bulls were testing the 98.57 resistance handle today. Anyhow, the efforts went in vain, and the daily volatility of the Greenback remained capped under the aforementioned resistance mark. Quite remarkably, the US Dollar Index had already breached above the sturdy 98.37 resistance mark, generating hopes for a consistent future uptrend. Notably, the Stochastics technical indicator was revealing overbought signs which could have played its role in dragging down the Index.
Other than the US Q2 GDP, the Jobless Claim reports remained another point of interest for the Greenback traders. The Continuing Jobless Claims computed since August 16 recorded 1.680 million over 1.698 million estimates. Meantime, the Initial Jobless Claims calculated since August 23 published 215K, in-line with the market hopes. Additionally, the July Pending Home Sales and Q2 QoQ Personal Consumption Expenditures showcased adverse reports, luring the sellers.
Earlier this month, 38.2% Fibonacci level or 1.1236 level was restricting the potential upward drifts. Later the month, the bulls were not even able to make a move above 23.6% Fibonacci level or 1.1156 level. Today, the Fiber was underway a strong tumbling rally, targeting the robust 1.1027 support handle. In the interim, the Stochastic was already near the oversold conditions, keeping the ball in the sellers’ court.
On the event side, the highly significant German August YoY Harmonized Index of Consumer Prices reported 0.2% lower than the 1.2% market expectations. Quite noticeably, the German August Unemployment data remained in-line with the consensus estimates as well as the previous data.
Though the Cable has had the underlying Parabolic SAR to cheer up the bulls, the pair remained far below the overhead red Ichimoku Clouds. Quite notably, 1.2294 resistance was disallowing pair’s upside. In the meanwhile, the Relative Strength Index (RSI) continued to indicate 46.50 levels since last day. On the Brexit front, UK PM Boris Johnson takes help from the Queen to suspend the Parliament. Hence, suspension of the UK Parliament ahead of Queen’s speech would help Boris to execute his exit plans with lesser interference.
“We still hope it will be possible to avoid a no-deal Brexit and we are looking forward to any proposals from the British government that fit into the Withdrawal Agreement,” Dutch Foreign Minister Stephan Blok said. “It’s in nobody’s interest to see a no-deal Brexit.”