As we enter the weekly close, we want to focus on USD/JPY. Known for its yield sensitivity, it will be of interest to see whether today's economic data set concerning the Michigan Consumer Sentiment is capable of triggering some volatility, especially in 10-year US T-Note yields.
The data is expected to come in at 98.5 points against a former reading of 98.2, which was revised upwards from a preliminary 97.9, as the consumer expectations sub-index came in stronger than initially thought.
Nevertheless, we are a little sceptical as to whether today's data can really trigger any kind of volatility – since the main focus will likely be on the comments from Fed's Williams yesterday.
Williams' comments "to take swift action when faced with adverse economic conditions" and "keep interest rates lower for longer" where interpreted as excessively dovish, pushing the probability of a 50 basis point rate cut from the Fed on July 31 to nearly 70% after it was 0% back on July 5, (thanks to solid NFPs).
As a result, the US dollar was sold on a broad front, Gold made new yearly highs and pushed above 1,440 USD.
With the break below 107.50 in USD/JPY into yesterday's NY close, the path down to 106.80 and even lower to new yearly lows is clearly levelled into the weekly close, with our overall and midterm target around 105.00, the Flash Crash Lows from January, being on our agenda for the upcoming days.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
The data is expected to come in at 98.5 points against a former reading of 98.2, which was revised upwards from a preliminary 97.9, as the consumer expectations sub-index came in stronger than initially thought.
Nevertheless, we are a little sceptical as to whether today's data can really trigger any kind of volatility – since the main focus will likely be on the comments from Fed's Williams yesterday.
Williams' comments "to take swift action when faced with adverse economic conditions" and "keep interest rates lower for longer" where interpreted as excessively dovish, pushing the probability of a 50 basis point rate cut from the Fed on July 31 to nearly 70% after it was 0% back on July 5, (thanks to solid NFPs).
As a result, the US dollar was sold on a broad front, Gold made new yearly highs and pushed above 1,440 USD.
With the break below 107.50 in USD/JPY into yesterday's NY close, the path down to 106.80 and even lower to new yearly lows is clearly levelled into the weekly close, with our overall and midterm target around 105.00, the Flash Crash Lows from January, being on our agenda for the upcoming days.
Disclaimer: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.