Sharp Declines in Euro and European Markets Triggered by French Political Drama
| Action Insight Weekly Report 6-22-24 |
| Sharp Declines in Euro and European Markets Triggered by French Political Drama |
Yen ended as the runaway loser last week as its decline reaccelerated towards the end. With the crucial 160 level against Dollar now within reach, market participants are keenly watching to see if Japan will intervene soon to prop up the Yen, or just let it depreciate further. Swiss Franc was the second weakest currency by a mile, declining following SNB's rate cut. Despite this, the Franc's decline is at worst seen as consolidation of its strong gains earlier this month, with no indications of a reversal in trend. While Euro did recover some ground against the Franc, it remains susceptible to further declines due to ongoing political instability in the European Union. British Pound is also facing vulnerabilities after BoE suggested that a rate cut is still on the table for August. Both Euro and the Pound ended the week in the middle of the performance spectrum. Conversely, Australian Dollar was the standout performer, buoyed by RBA's stance that keeps the possibility of another rate hike open. Canadian Dollar followed closely as the second strongest currency, while Dollar also saw gains, driven by robust PMI data... |
GBP/JPY Weekly Outlook GBP/JPY's up trend resumed after brief retreat and hit as high as 202.01. Initial bias is now on the upside this week for 61.8% projection of 191.34 to 200.72 from 197.18 at 202.97. Firm break there will pave the way to 100% projection at 206.56 next. on the downside, below 200.46 minor support will turn intraday bias neutral first. But outlook will remain bullish as long as 198.90 support holds, in case of retreat. | |
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