Euro advances on Draghi’s comments

The markets were seen trading quietly on Monday. Following the new tariffs on China coming into effect since 24ththe markets were seen to be a little spooked. This was followed through by the U.S. and China trade talks stalling for the moment.

The ECB President Mario Draghi was speaking at an economic event on Monday. He commented about the underlying inflation pressures picking up. This briefly sent the Euro higher on the day, although the common currency pulled back since.

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The German Ifo business confidence index for September was seen at 103.7. Although the index beat expectations of 103.2, it eased from August reading of 103.9.

The economic data today will start off with a speech by the Bank of Japan governor Kuroda. Later in the day, the German WPI data is due. The wholesale price index is forecast to rise 0.2% on the month after a flat print the month before.

Bank of England’s MPC member, Vlieghe will be speaking later in the day. The NY trading session is expected to remain calm. The conference board’s consumer confidence index is due later in the day.

Consumer confidence is forecast to ease to 132.2 from 133.4 previously. After this event, Richmond Fed manufacturing will be reporting. Expectations call for the index to reduce to 22 from 24 previously.

EURUSD intraday analysis

eurusd

EURUSD (1.1738): The EURUSD currency pair rallied to post intraday highs before easing back. The currency pair closed with a doji pattern near the support level of 1.1745. We expect the currency pair to consolidate near the area of 1.1745 – 1.1718 region. If the support area fails, we expect the declines to test the lower support at 1.1651. The overall bias remains to the upside, but this could change on a break down below 1.1651.

GBPUSD intraday analysis

gbpusd

GBPUSD (1.3103): The British Pound was seen posting a modest bounce only to be held back by the 20-period EMA. Price action could be seen extending the declines back to the support at 1.3028. A reversal around this level could potentially keep the upside bias intact. However, this could change if the cable slips below this support. The previously held resistance level is likely to be the target on a reversal off the support level.

XAUUSD intraday analysis

xauusd

XAUUSD (1198.62): Gold prices were seen trading subdued. Price action managed to hold out near the support level offering a modest bounce in price action. Gold prices could be seen maintaining the sideways range within 1212.20 – 1196.00 region in the short term. A breakout from this level is required to establish the near-term direction. There is a risk of the precious metal failing at the support. This could push gold prices lower to 1186.15 region.

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About the Author
“John Benjamin Resident Analyst at Orbex. John has over 8 years of experience specializing in the currency markets, tracking the macroeconomic and geopolitical developments shaping the financial markets. John applies a mix of fundamental and technical analysis and has a special interest in inter-market analysis and global politics.”
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