Never miss a story from Justin McQueen

Subscribe to receive daily updates on publications
Please enter valid First Name
Please fill out this field.
Please enter valid Last Name
Please fill out this field.
Please enter valid email
Please fill out this field.
Please select a country

I’d like to receive information from DailyFX and IG about trading opportunities and their products and services via email.

Please fill out this field.

Your Forecast Is Headed to Your Inbox

But don't just read our analysis - put it to the rest. Your forecast comes with a free demo account from our provider, IG, so you can try out trading with zero risk.

Your demo is preloaded with £10,000 virtual funds, which you can use to trade over 10,000 live global markets.

We'll email you login details shortly.

Learn More about Your Demo

You are subscribed to Justin McQueen

You can manage your subscriptions by following the link in the footer of each email you will receive

An error occurred submitting your form.
Please try again later.

MARKET DEVELOPMENT – Japanese Yen Drops, GBP Briefly Above 1.27, NOK Outperforms

DailyFX Q2 2019 FX Trading Forecasts

GBP: Today’s jobs report had been encouraging across the board with wages picking up, while the unemployment rate remained at a 44yr low. Consequently, GBPUSD pushed above 1.27, while EURGBP briefly broke below. While the firmer UK jobs data emboldens the recent hawkish commentary from BoE members, the fact remains the same in that the BoE are largely on the side-lines until Brexit clarity is found. As such, focus on Sterling will remain on who the next PM will be and how that will be impact the Brexit outlook. As it stands, the case for a 2019 rate hike remains doubtful.

NOK: One central bank that will continue its normalisation in interest rates is the Norges Bank. Softer than expected CPI pushed the NOK lower against the USD and EUR, however, volatile components (food prices, airplane tickets) had been the notable drags on inflation, which in turn is unlikely to derail the Norges Bank from raising rates next week. Alongside this, the latest regional network survey had been firmer, having highlighted that growth over the past 3-months had been the highest since Q3 2012, thus not only providing a green light for next weeks rate increase but also raises the potential that the central could perhaps raise its tightening path. This will also depend on how they see the impact of slowing global growth feeding into the domestic economy, which has been resilient thus far.

JPY: The Japanese Yen is softer across the board, with the exception of the New Zealand Dollar as increased risk appetite keeps equity markets bid. Alongside this, with US 10yr yields basing out around 2.06%, now trading at 2.17%, USDJPY has continued to edge higher towards 109.00.

Japanese Yen Drops, GBP Briefly Above 1.27, NOK Outperforms - US Market Open

Source: DailyFX, Thomson Reuters

DailyFX Economic Calendar: – North American Releases

Please add a description for the image.

IG Client Sentiment

Japanese Yen Drops, GBP Briefly Above 1.27, NOK Outperforms - US Market Open

How to use IG Client Sentiment to Improve Your Trading

WHAT’S DRIVING MARKETS TODAY

  1. EURUSD Price Outlook Cloudy - ECB’s Rehn Talks Rate Cuts and More QE” by Nick Cawley, Market Analyst
  2. Currency Volatility: EURUSD, AUDUSD, USDTRY Weekly Outlook” by Justin McQueen, Market Analyst
  3. GBPUSD, AUDUSD, Gold, and More - Technical Outlook” by Paul Robinson, Currency Strategist
  4. Using FX To Effectively Trade Global Market Themes at IG” by Tyler Yell, CMT , Forex Trading Instructor

--- Written by Justin McQueen, Market Analyst

To contact Justin, email him at Justin.mcqueen@ig.com

Follow Justin on Twitter @JMcQueenFX