Its bound to be a volatile week as we head towards policy decisions of two of the world’s key central banks; the Fed and the BoJ are expected to make their latest policy communications throughout next Wednesday.
A prelimninary gauge of sentiment shows that the major Asian markets were mostly in positive territory this morning, shrugging off a negative US close last Friday. It seem that traders largely followed the price of oil higher, as the black gold saw prices rise on news that Opec and non-Opec producer countries were close to reaching a quota stabilising deal.
Trading at the Australian stock exchange was delayed this morning due to to a technical issue, and the Japanese market is closed today due to a public holiday.
Trading in the Forex Market has seen the US Dollar surrender some of its Friday gains this morning, the DXY is currently at 95.89 after Friday’s close of 96.04. EURUSD has found support around the 50 DMA (1.1162) and a trendline that has provided support since early August.
EURUSD is back in neutral trend but we expect 1.1121:1.1153 to provide significant support before resuming 1.12 levels.
Gold as well has managed a small bounce off the 100 DMA (1305.36) as it reflects the weaker USD this morning. USDJPY continues within a tight range as we face major headwinds as we approach the respective central banks’ key policy communications next Wednesday.
