EURUSD

What happened to EURUSD in the last week? Last week was the second consecutive week of loss in EURUSD that traded unchanged today at 1.0541, oneyear low. EUR weakness was a mix of weak fundamentals, political instability from Germany and USD strength after USD index increased to 106.65, the highest in a year. ECBs President Lagarde will deliver a speech later today. 

1.0590 remained shortlived resistance, but price action showed no strong bets. The correction in USD index may trigger further but slow correction to higher level.

USDJPY

USDJPY started the trading on Monday higher at 154.73 after BoJ governor reiterated that the central bank would increase the rates, but he gave no guidance on the timing. We clarified before that the excessive Yen weakness is likely to trigger further intervention by BoJ, it happened before it may happen later if needed. Machinery orders in Japan fell by 0.7 in September, weaker than the estimates. 

Keep in mind, 155.35 executed then 154.50 are support levels. Markets perception still expects an intervention by BoJ.

GBPUSD

GBPUSD lost 1.8 last week, trading slightly higher today at 1.2626. It is correct that BoJ cut the rates by 0.25 as expected, but BoE governor Bailey showed no appetite to keep cutting  the rates aggressively, urging the UK government not to implement new policies of protectionism as Trump intended to do. 

The improvement in price action was fragile, still targeting 1.26.  1.2690 1.2750 are…