Forex has seen the major currencies begin to range trade as traders may be positioning themselves for action from the U.S Federal Reserve next week. The Pound’s value has held above the 1.34 level, and the Euro remains above the 1.18 juncture.
GBP/USD: Palace Intrigue has not Relented
The ‘palace intrigue’ surrounding Prime Minister Theresa May’s government has not relented, but the Pound has been able to sustain its value above the 1.34 level against the U.S Dollar. Services data from Britain was disappointing yesterday, but traders may continue to search for additional value from the Pound in the short term.
Gold: Precious Metal Falters
Gold has taken a hit the past day and is near 1266.00 U.S Dollars an ounce this morning. The precious metal is near vital support levels after faltering early this week. Gold has been able to reverse upwards when tested near these values the past month. And courageous speculators may believe the precious metal has the capability to bounce upwards in the near term.
EUR/USD: Established Range Setting the Tone
The Euro has essentially languished against the U.S Dollar the past few trading sessions. A range has been established and the European currency is near the 1.1835 level. Traders may be positioning themselves ahead of the U.S Federal Reserve’s interest rate decision next week, and the Euro could be ready to add additional value.
Crude Oil: Incremental Erosion in Value
Crude Oil Inventories will come from the States today and the commodity remains under pressure as it hovers above 57.00 U.S Dollars a barrel. Crude Oil has shown signs of weakness the past week, and traders may look for an incremental erosion in value to continue.
USD/JPY: Yen Gets Stronger on Risk Adverse Trading
The Yen has proven stronger the past day and a half, after initially trading at weaker values on Monday the currency has seen risk adverse sentiment increase. The Japanese currency is near the 112.00 juncture against the U.S Dollar which has proven to be important support.
Yaron Mazor is a senior analyst at SuperTraderTV.
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