GBP/USD Muted, USD/JPY Rejects 200DMA, EUR/CAD Tests 7-Year Trendline - US Market Open
GBP: The UK look to be heading towards a general election with opposition leader stating that he will back one. However, as we highlighted in this morning’s “Brexit Briefing” potential hurdles remain with regard to support for certain amendments, which include lowering the voting age to 16 years old, alongside allowing EU citizens to vote, both of which are not favoured by the Conservative party.
CAD: The Canadian Dollar is marginally softer today as the commodity currency tracks oil prices lower with Brent crude futures falling over 1%. In turn, USD/CAD is underpinned at 1.3050 leaving key support at 1.3015 untouched. Across other CAD crosses, EUR/CAD is once again testing the 7-year trendline which has previously been defended. However, a closing break below could pave the way for a move towards 1.42.
JPY: USD/JPY has traded below its 200DMA since the beginning of May and today is no different with the pair rejecting 109.05. However, as investors continue to pile in USD/JPY longs further upside may be on the horizon, which in turn would see USD/JPY above the 200DMA. In terms of the key catalyst for this, eyes will be on tomorrow’s FOMC rate decision.
Source: DailyFX, Refinitiv
Economic Calendar (29/10/19)
WHAT’S DRIVING MARKETS TODAY
- “Brexit Briefing: GBP/USD Eyes Today's Vote for Early Election” by Justin McQueen, Market Analyst
- “Dow Jones Sluggish, S&P 500, Nasdaq 100 New Records May Not Hold” by Paul Robinson, Currency Strategist
- “Canadian Dollar Outlook: USD/CAD Testing Support as Rate Decisions Loom” by Nick Cawley, Market Analyst
--- Written by Justin McQueen, Market Analyst
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