Today we are seeing the first signs of weakness in the dollar against all the other major currencies but JPY. USDJPY has rallied higher in today’s trading. This is an interesting switch after the JPY alone bucking the trend of USD strength yesterday. Following the theme of safe-havens, we could conclude that the strength in the stock market yesterday indicates the return of the risk-on mentality and therefore JPY (a safe-haven currency) loses ground. This combination means that therefore is upside momentum in JPY crosses. EURJPY, GBPJPY and AUDJPY among others are trending higher in intraday timeframes and could provide intraday trading opportunities today. Crude oil is still hovering around the 52.50 resistance after it broke the level in Friday’s trading. EURUSD lost downside momentum yesterday and shows the signs of reversal. If this strength continues it is likely to be positive for the risky assets, USOIL included. Today’s economic calendar has no significant events scheduled for today but the rest of the week will be quite busy. See our economic calendar for times and details. By reading further you agree with our disclaimer at the bottom of this page and acknowledge that we do not provide investment advice.

US Dollar Index (DXA) has started to lose momentum. While it is still trending higher, the latest rally to 90.95 was weaker than the one that forms the January 11th peak. This creates a large wedge with the lower end of the wedge currently at 90.40. The index has now corrected lower from the resistance and further weakness in DXA would mean strength in EURUSD and other risky assets in today’s trading.

Stocks have had some great swings lately. While for instance Deutsche Post and Blackberry have rallied strongly Biomarin Pharmaceutical (BMRN) has dropped to a key support level at 80.94. There is a rising trendline support also that roughly coincides with the horizontal level and has bounced the price higher couple of times last week. This rising support is currently at 80.11. A break above 83.60 would open up the possibility of BMRN moving to our first target zone around the 61.8% retracement level (86.45 – 88.20). Our second target zone is at 90.90 – 92.65. Open a VIP Black account with us. There are no per trade execution or monthly fees on our VIP Black accounts. 

Recent macroeconomic data releases

  • US Average Hourly Earnings 0.8%, 0.2% expected
  • US Non-Farm Employment Change -140K, 60K expected
  • US Unemployment Rate 6.7%, 6.8% expected
  • US CPI 0.4%, 0.4% expected
  • US Core CPI 0.1%, 0.1% expected
  • US Core Retail Sales -1.4%, -0.1% expected
  • US Retail Sales -0.7%, 0.0% expected

Important macroeconomic data releases this week

  • No significant data releases scheduled for today

You may access the times and dates in the economic calendar here.

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Trade Safe!

Janne Muta
Chief Market Analyst
TIOmarkets.com

TIOmarkets offers exclusively consultancy-free service. The views expressed in this blog are our opinions only and made available purely for educational and marketing purposes and do NOT constitute advice or investment recommendation (and should not be considered as such) and do not in any way constitute an invitation to acquire any financial instrument or product. TIOmarkets and it’s affiliates and consultants are not liable for any damages that may be caused by individual comments or statements by TIOmarkets analysis and assumes no liability with respect to the completeness and correctness of the content presented. The investor is solely responsible for the risk of his/her investment decisions.

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