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Friday saw some good and not so good results. However, overall I was basically content with the developments, those being the additional follow-through higher in the dollar.
EUR/USD actually dipped a little more than expected but has actually made that situation clearer while USD/CHF exceeded expectations by some margin and that has forced a slight re-think. As for GBP/USD, the upside failure and break of fairly close supports was enough to point to the same fate. Basically, while the start of the day looks like it will be the customary consolidation, the outcome should be similar to Friday although I do have a slight conundrum in that GBP/USD seems to have a far more limited downside as compared to EUR/USD. That may need some attention.
Now, the interesting feature across the Europeans, and I’ll add the Aussie to that group, is that the dollar seems to be running out of strength and the potential for a correction is therefore raised. I’m not sure it’ll happen today. Much depends on the nature of the follow-through into the dollar.
USD/JPY did well and actually was even stronger than the outlook provided on Friday. Nevertheless, this is more a matter of balance between the respective lower wave degree moves but one that still fits nicely into the larger picture. Even so, it will need a correction before too long. This raises the balance between USD/JPY
For today, steady as she goes in the Asian session, much as normal, but look for more defined extension of Friday’s dollar gains later.
EUR/USD actually dipped a little more than expected but has actually made that situation clearer while USD/CHF exceeded expectations by some margin and that has forced a slight re-think. As for GBP/USD, the upside failure and break of fairly close supports was enough to point to the same fate. Basically, while the start of the day looks like it will be the customary consolidation, the outcome should be similar to Friday although I do have a slight conundrum in that GBP/USD seems to have a far more limited downside as compared to EUR/USD. That may need some attention.
Now, the interesting feature across the Europeans, and I’ll add the Aussie to that group, is that the dollar seems to be running out of strength and the potential for a correction is therefore raised. I’m not sure it’ll happen today. Much depends on the nature of the follow-through into the dollar.
USD/JPY did well and actually was even stronger than the outlook provided on Friday. Nevertheless, this is more a matter of balance between the respective lower wave degree moves but one that still fits nicely into the larger picture. Even so, it will need a correction before too long. This raises the balance between USD/JPY
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, EUR/USD and their offspring – EUR/JPY. It has rallied as expected but dragged back by the falling EUR/USD. Indeed, the cross is likely to be subjected to the potential for a less direct rally as compared to that which ended early last month. With the outlook in USD/JPY and EUR/USD at times conflicting and at others matching there is a much greater chance that we’ll see the EUR/JPY of old in generating frustrating consolidations divided by sudden rushes in with direction – but basically bullish overall.For today, steady as she goes in the Asian session, much as normal, but look for more defined extension of Friday’s dollar gains later.
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