• The US dollar edged lower overnight after weak CPI data; G10 currencies were traded higher except JPY and CAD.
  • Turkish Lira lifted 4.00% after Turkey Central Bank raised interest rate; other EM currencies followed the trend with MXN and ZAR up by a percent each.
  • BOE and ECB decided that the interest rate remain unchanged at 0.75% and 0.0% respectively. No changes at the BOE policy review whereas ECB downgrade growth forecast.

USD edge lower on weak CPI.

CPI increased 0.2% in August, the same increase as in July, the U.S Bureau of Labor Statistics reported. The reading was a little lower than the expected 0.3%.

Overnight, G10 currencies emotion travel to the North; US CPI was the source of inspiration. EURUSD settled at 1.1700, GBPUSD settled above 1.3100, and AUDUSD tad closed below 0.7200 mark. Besides Gold rallied to 1212.0$ but rejected at the 50MA and closed at 1200$.

The dollar index (KTM: USDX) closed at 94.50 overnight down 0.30% and the US 10year Treasuries held at 2.97%

With the Risk-on mood, JPY on the back foot overnight.

JPY crosses are ending the week on a higher note so far, with GBP and CAD rallied by 2.30% each, followed by EUR 1.75% and AUD, CHF and USD by 1.0% each.

Commodities:

Brent oil down by 1.80% and Gold down by 0.4% rejected at 50MA.

Crypto:

Bitcoin (KTM:BTCUSD) closed with 2.5% gains, closed at 6450$.

What’s on today?

In Asia, we see China releases August retail sales and industrial production data. Turning to Europe, we see EZ Trade balance, not a market mover. Finally, in the US we see Retail sales and consumer sentiment.

Chart of the day: EURCHF

As long as 1.1260 is support look for 1.1315 and 1.1340. The RSI has been painting RSI divergence on the daily chart, and the oscillator is remaining bullish.

Intraday pivotal finds at 1.1280 below here support find at 1.1260 and 1.1230. The selling pressure accelerates below 1.1230 to 1.1180 and 1.1150.

It is important to always keep in mind the risks involved in trading with leveraged instruments.

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