USDJPY and Crude Oil Remain Weak

USDJPY, H4                 

The dollar has traded mixed, picking up some demand versus its G3 counterparts following the phase of weakness sparked by Friday’s sub-forecast U.S. jobs report, but lost some ground to other currencies. EURUSD fell back under 1.1240, putting in a little distance from the seven-month peak seen on Friday at 1.1285. USDJPY, after extending to a fresh 18-day low in Tokyo, at 110.31, recouped to levels about 110.60. I remain short USDJPY on the daily chart from May 31 with a target at 109.90.  The narrow USD index was showing a 0.3% gain, as of the early European PM session. Cable, after dipping to a low of 1.2861 following a below-expectations UK services PMI report, rallied back above 1.2900. A new UK poll, part of which was conducted after the terror attacks in London on Saturday night, put the Conservative Party’s lead over Labour at 11 points, well up on a different poll on Friday showing the party with only a 6 point lead. AUDUSD also rallied, to an 11-day peat at 0.7486, while USDCAD carved out a three-session low at 1.3461, despite a dip in oil prices.

USOil topped at $48.42 highs during Asian hours, following reports that Saudi Arabia and other gulf nations cut diplomatic ties with Qatar, accusing it of supporting terrorism. Since then however, prices have fallen more than $1/bbl, as the market ponders whether the effectiveness of the political rift could impact the OPEC/NOPEC production cut agreement. In addition, U.S. production continues to ramp higher, with drillers adding new rigs for a record 20 straight weeks, according to Baker-Hughes data. The front contract has fallen back to session lows of $47.20.


Click here to access the HotForex Economic calendar.

Want to learn to trade and analyse the markets? Join our webinars and get analysis and trading ideas combined with better understanding on how markets work. Click HERE to register for FREE! The next webinar will start in:

Stuart Cowell

Senior Market Analyst


Disclaimer: This material is provided as a general marketing communication for information purposes only and does not constitute an independent investment research. Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of buying or selling of any financial instrument. All information provided is gathered from reputable sources and any information containing an indication of past performance is not a guarantee or reliable indicator of future performance. Users acknowledge that any investment in FX and CFDs products is characterized by a certain degree of uncertainty and that any investment of this nature involves a high level of risk for which the users are solely responsible and liable. We assume no liability for any loss arising from any investment made based on the information provided in this communication. This communication must not be reproduced or further distributed without our prior written permission.