CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

Positioning to dominate

Article By: ,  Financial Analyst
September 26, 2014 11:06 AM

The Asian session has been reasonably quite as the dollar continues to hold onto gains with USD/JPY moving up to 109.15/20. Japanese welfare minister Yasuhisa Shiozaki said that he has absolutely no intension of delaying the GPIF reforms, as the Japanese CPI data was seemingly ignored by the market as the core reading came in at 3.1% versus the 3.2% expected.

It was another session of underperformance for the antipodean currencies as the AUD broke the 0.8850 level that had held since August 2013. The technical picture now points to a test of the 0.8660 level as the NZD slid through 0.7900. My contacts have suggested that lack of liquidity played a major part in the move as some sighted the market had been miss-hit by market makers, although no official confirmation has been given on that suggestion.

The dollar continues to outperform as the dollar index breaks above 85. China and Geopolitical tensions continue to weigh on equities but, with the Fed speak this week somewhat dovish, I wonder how long it will be before we get a comment from a Fed member with regards to the surging dollar and the effects it is having on the economy. I note positioning is starting to elevate to extreme levels which added together has all the hallmarks of a 2%-3% correctional cleansing.

The data calendar is dominated from across the pond with Q2 GDP and the University of Michigan consumer sentiment survey.

 

EUR/USD

Supports 1.2695-1.2660-1.2625  | Resistance 1.2765-1.2785-1.2820

 

USD/JPY

Supports 108.40-108.25-108.00  | Resistance 109.30-109.50-110.00

 



GBP/USD

Supports 1.6275-1.6240-1.6160  | Resistance 1.6340-1.6395-1.6420

 

 

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024