Looking at the intraday chart of the Euro/Japanese yen (EUR/JPY) currency pair, we are observing a three-wave correction (blue wave ii) taking place, which could already be completed as of the recent sharp reversal down from the 114 area.
The Mexican peso rose 2 percent on Tuesday after record lows against the U.S. dollar, buoyed by a view that Democratic presidential candidate Hillary Clinton fared better than rival Donald Trump in a television debate.
Ahead of next week’s talks in Algeria, Reuters reported this morning that Saudi Arabia is apparently willing to reduce its oil output for as long as Iran agrees to freeze its production at current levels. Reuters cited three unnamed sources behind this story, but so far there has been no official confirmation or denial.
The dollar fell to its lowest in a week against a basket of major currencies on Thursday as investors sold the greenback following a writedown of longer-term interest rate expectations from the Federal Reserve.
Stock market bulls have got more than what they were realistically hoping for from the Bank of Japan and now better hope that the U.S. Federal Reserve doesn’t ruin the party for them. Global stocks surged higher and the yen weakened across the board, although the latter has since found strong support against the dollar as traders took profit on their positions ahead of the Fed meeting later on today.
Risk is on the menu at the start of this new week with stocks, crude oil and commodity currencies all climbing higher, while the dollar is easing back slightly after Friday’s rally. The weaker dollar has also boosted the GBP/USD, which has bounced off the 1.30 handle, and to a lesser degree the EUR/USD.
The U.S. dollar hit a more than two-week high against a basket of major currencies today after U.S. inflation data boosted bets the Federal Reserve would raise interest rates in December, and touched a one-month high against sterling on worries over Britain's Brexit vote.