USD/JPY reaches six-year high

<p>The dollar continues to outperform, emphasising the ‘buy dollars wear diamonds theme’ we have seen despite the weaker US jobs report last Friday. The catalyst behind […]</p>

The dollar continues to outperform, emphasising the ‘buy dollars wear diamonds theme’ we have seen despite the weaker US jobs report last Friday. The catalyst behind the move comes from the recent comments from Fed officials that have the market expecting a hawkish FOMC outcome next Wednesday. The yield benefiting carry trade now appears to be under pressure as AUD finally takes out the 200-day moving average at 0.9180. USD/JPY makes a fresh six-year high above 106.50 following a weaker Japanese machine orders number with the month on month number coming in at 3.5%, versus the 4% consensus. BoJ Deputy Governor Iwata stated that the BoJ can achieve its 2% inflation goal by taking monetary policy initiatives and not becoming totally reliant on a weaker currency.

CFTC data has revealed that euro short positioning has now grown to levels equivalent to those seen in the euro crisis in early 2012 as geographic tensions start to build again. A White House spokesman has said that President Obama has now approval to ‘destroy’ the Islamic state ISIS.

There is a light data calendar today, with only manufacturing data from France along with wholesale inventories from across the pond this afternoon as BoE Governor Mark Carney and other MPC members give evidence on the August inflation report in parliament.

 

EUR/USD

Supports 1.2920-1.2860-1.2820 | Resistance 1.2950-1.2985-1.3000

 

USD/JPY

Supports 106.05-105.45-105.00 | Resistance 106.55-106.80-107.00

 



GBP/USD

Supports 1.6060-1.6000-1.5855 | Resistance 1.6185-1.6235-1.6285

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