Without any news releases to speak of today the markets are basically left to continue consolidating their losses or continue with the trend. Yesterday was a big day for the US Dollar and some of its gains were already reversed. There are signs on some pairs that this morning is another opportunity to buy the US Dollar.
Headline Event Risk Today
NONE
EUR-USD
The Forex Daily Outlook for the EUR-USD is for continued losses. The 1.3550 area is good resistance for a short term reversal but risk still is up to 1.3750.
USD-JPY
The Forex Daily Outlook for the USD-JPY is for continued losses. We still have failed to make a new record low with the latest downtrend. Expectations are for a drop to 75.00 at a minimum. Highest probability is for downward continuation.
GBP-USD
The Forex Daily Outlook for the GBP-USD is for continued losses. The drop from 1.5700 was powerful as it was on the commodity currencies. The correction has a good chance of hitting 1.5530 but it is expected to be shallow.
USD-CHF
The Forex Daily Outlook for the USD-CHF is for continued gains. The upward acceleration has not continued as powerfully as it began. Especially looking at the EUR-CHF we are still near 1.20 (1.2190 as this is written). The Swiss National Bank has been out with reminders of its promise to buy unlimited quantities of foreign currencies to keep the Swiss Franc weak. Currently the Franc has not been sold off very much. Expect the trend to continue but this pair is especially vulnerable to correction.
AUD-USD
The Forex Daily Outlook for the AUD-USD is for continued losses. All risk aversion moves have been incredibly painful for this pair. It was well bid due to its relatively high yield and is now paying the price.
USD-CAD
The Forex Daily Outlook for the USD-CAD is for continued gains. On its third attempt to break parity it broke it as if it was nothing and made it all the way to 1.0350 in one leap. This pair will probably see more correction before the trend continues.
NZD-USD
The Forex Daily Outlook for the NZD-USD is for continued losses. This pair is in the same condition as the AUD-USD. It is being hit hard by all risk aversion moves. A retracement could take this pair to 0.7975 – 0.7980. Lower probability targets are 0.80 and even 0.81.