With risk management in mind, MACD and RSI for USDJPY is in downtrend mode. However, there is a chance that the pair may move back up again to test the channel’s resistance area. US Money Markets remain highly dependent on expectations of the Feds’ probability of a Rate Hike in December.
As the European Central Bank 2-day Policy Meeting commences today, the Euro eased by the close of London Session as Investors remained cautious ahead of European Central Bank Policy Meeting on Thursday. Sterling edged up on expectations that the Bank of England will hike rates this year. The Swiss Franc advanced, extending gains for the fourth straight session, as Investors remained cautious ahead of this week’s ECB Policy Meetings and on GeoPolitics in the United States. The Australian Dollar rallied to a 2-year high as perceived hawkish RBA Meeting Minutes and broad based Greenback weakness continued to support the major.
Potential Catalysts during the Wall Street session include: 1. Housing Starts for June (8:30 AM ET) and 2. EIA Petroleum Status Report (10:30 AM ET).