The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • Another roller-coaster ride overnight with early risk aversion shifting late in the session
  • Better US data helps the bulls assert control into the close
  • Euro continues lower as Italian, Spanish bond yields push higher
  • GBP/USD breaks below 1.5900 after inflation comes in slightly lower than expected
  • Gold, oil both surge on US data, particularly better retail sales
  • UK job numbers and US CPI the day’s major events

AUD/USD
The Aussie dollar continues to look bearish with traders looking for new positions on a break below 1.0110. This sets up a move back to major support at 1.0060.

GOLD
Gold found support at 1760 before pushing higher but we are yet to see the precious metal break above 1800. Traders will be looking to play the range in the near term until we see a clear break above 1800.

EUR/USD
We were looking for a natural retracement higher yesterday but that just didn’t happen with the Euro continuing to be sold lower. The short side remains the best strategy with a break below 1.3500 likely to be seen as the next trigger for new trades.

GBP/USD
The GBP broke below support at 1.5880 as last night’s inflation was released and this now paints a more bearish picture of the market. From here, a retracement back to 1.5880 is likely to provide the best chance for new shorts.

USD/JPY
The dollar-yen spiked up to 77.50 yesterday but remains trapped in this consolidation zone between 76.80 and 77.50. Traders will continue to focus on the short side with a break below 76.80 likely to be seen as a new chance to sell.

SILVER
No real change from yesterday with silver looking as if it has moved into consolidation mode but the market remains bullish in the near term. We’d be looking for new longs on a pullback to support.

USD/CHF
The dollar-Swiss didn’t provide any opportunity overnight with the pair continuing to grind higher. A move above 0.9200 is likely to attract buying interest.

GBP/JPY
As we discussed yesterday, 122.00 has provided some good support but the pair is slowly working away and is now below that level. This sets up a potential move back to 120.80 with any retracement back to 123.00 likely to attract selling interest.

AUD/JPY
Still neutral on the Aussie-yen as the pair remains trapped in the range and, with the pair now at the bottom of the range, traders will be looking for longs from around 78.00. A clear break of 78.00 will be seen as bearish.

OIL
Crude overshot to the downside yesterday forming new support at 97.50 and this could set up the ol’ Texas Tea for an assault on 100 per barrel. We’ve rolled over a touch this morning and traders will be looking for a bullish reversal at lower levels to participate on the move higher. Don’t forget inventories due tonight at 2.30am.

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