Yen Serves As Safe Haven On Korea Worry; Euro And Pound Unmoved
Dear Traders,
Nothing much has changed in the EUR/USD and GBP/USD while a holiday trade was clearly in effect on Tuesday. Other currencies, such as the yen were sought as a safer haven after North Korea said Tuesday it successfully test-fired an intercontinental ballistic missile, escalating tensions between North Korea and the U.S.
The political turmoil comes ahead of the G-20 summit in Hamburg this weekend. U.S. President Trump will attend the G-20 summit and is expected to hold his first meeting with Putin.
Today, market participants will focus on the Federal Reserve and its minutes from the latest FOMC meeting. Investors are looking for clues on the path for interest rates ahead of the U.S. jobs report due on Friday. With a number of market participants doubting the Fed rate hike plans, the FOMC meeting minutes could be an interesting event for traders.
The FOMC minutes are scheduled for release at 18:00 UTC.
The EUR/USD found some near-term support at 1.1335 but we expect a stronger support to be at 1.13. If the euro falls below 1.1280 we could see a slide towards 1.1220. Euro bulls should however focus on a renewed break above 1.14 in order to buy euros towards 1.15.
The GBP/USD refrained from dipping significantly below 1.29, at least for the time being. In order to sell pounds we will keep an eye on prices below 1.2880. Lower supports are seen at 1.2850 and 1.28. Buyers of the GBP/USD should either take advantage of corrections towards 1.2885 and 1.28 or wait for a breakout above 1.3030.
The U.K. PMI report is scheduled for release at 8:30 UTC and could have a short-term impact on the pound.
We wish you good trades for today!
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