Money is only a tool. It will take you wherever you wish, but it will not replace you as the driver.
The Single currency extended gains to $1.1335 after the Fed will start purchasing corporate bonds on Tuesday through the secondary market corporate credit facility (SMCCF) to improve market functioning in the wake of COVID-19 disruptions and on reports the Trump’s administration is mulling an additional USD 1 trillion infrastructure spending plan.
The Pound soared to $1.2660 on upbeat sentiment regarding upcoming Brexit negotiations, though the optimism is centered on the talking rather than tangible progress toward resolving outstanding fishing and level-playing field issues.
The Yen drifted back to 107.50 per dollar undermined by a risk-on sentiment in the market, while BOJ’s boost to its virus lending program’s size to JPY 110 trillion from JPY 75 trillion this morning also added to the weak market mood on the Yen.
The Australian dollar popped higher to $0.6953 after the Reserve Bank of Australia reiterated in minutes from its June meeting that the national economic downturn may not be as bad as first feared.
The South African rand edged higher to 17.00 against the dollar as risk assets revived in Asia this morning on stimulus hopes.
The USD/MUR remained choppy at 40.25(selling) this morning despite volatility in other markets.
10:00 - GBP - Claimant Count Change (May)
10:00 - GBP - Average Earnings Index
11:00 - JPY - BoJ Press Conference
13:00 - EUR - German ZEW Economic Conditions (Jun)
16:30 - USD - Core Retail Sales (MoM)(May)
18:00 - USD - Fed Chair Powell Testifies
- From an Elliott Wave standpoint, USDCHF could potentially unfold into compelling impulsive Wave C of the zigzag correction of Wave (2) to a narrowing region 0.9550 (50% retracement of Wave (1)) to 0.9395 (100% projection of Wave A through B) in the near term trend, from the downside bias from April 6th high of 0.9797.
- Price could immediately start to shoot back up into Wave (3) on a longer perspective.
- Piercing above the resistance 0.9905 would endorse the structure.
- Alternatively, broader bearish invalidation of Elliott Wave Structure rest at 0.9191 of March 9th low while Relative Strength Index signals a bullish recoil higher for the pair.