Keep an eye on safe haven currencies as passenger jet gunned down

<p>The major news that will be affecting the FX markets today will be the shooting down of a passenger jet from the sky in Ukraine […]</p>

The major news that will be affecting the FX markets today will be the shooting down of a passenger jet from the sky in Ukraine near the Russian border.  So far everyone seems to be blaming the other side for this horrible act and the FX markets are very quiet indeed. You would expect to see some big moves on safe haven currencies like the JPY and CHF.

Now comes a waiting game as today has little to offer in terms of major data. The reaction from world leaders could, however, make the markets twitchy so a very unpredictable time for traders.

EUR/USD is still trading above 1.3500, with an expected CPI data yesterday at 0.8% still causing doubts as to when and if it will start to increase before the ECB will have to act on QE.

GBP/USD is currently around the 1.7100 level. It has been as high as 1.7191 this week and has been met with heavy sellers pushing it back down here. But it is looking strong against other pairs and could be dragged a bit further today if GBP/JPY gets sold on the havens going bid.

BoJ minutes were released last night and the main point was that they will continue with QE until the 2% inflation target is made. USD/JPY is still holding above 101.00 but could get a strong yen today dependant on any new news from the Malaysian jet disaster.

 

EUR/USD

Supports 1.3505 1.3480 1.3400 | Resistance 1.3555 1.3580 1.3625

 

USD/JPY

Supports 101.20 101.00 100.75 | Resistance 101.50 101.75 102.00

 



GBP/USD

Supports 1.7100 1.7060 1.7000 | Resistance 1.7145 1.7190 1.7210

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.