Keep an eye on safe haven currencies as passenger jet gunned down
City Index July 18, 2014 2:18 PM
<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.
Supports 1.3505 1.3480 1.3400 | Resistance 1.3555 1.3580 1.3625
Supports 101.20 101.00 100.75 | Resistance 101.50 101.75 102.00
Supports 1.7100 1.7060 1.7000 | Resistance 1.7145 1.7190 1.7210
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