FX168 Financial News (Hong Kong) News August 9th, 22:30 to August 10th, 05:00, the market summary: As the global interest rate cuts intensify, Trump today slammed the Fed, saying that the United States has the safest currency in the world. But the dollar is too strong to damage the interests of manufacturers, the Fed needs to lower interest rates. I hope that the Fed will cut interest rates by another 100 basis points; the Fed should stop quantifying the tightening. However, Trump subsequently said that it would not depreciate the dollar, we do not need it. But the dollar is still under pressure.
As the trade tension between China and the United States has once again warmed up, the high demand for safe havens continues to help the yen and the Swiss franc to strengthen. The yen rose to a seven-month high against the dollar. In geopolitical and economic tensions, the huge liquidity and current account surpluses of Japan and Switzerland often attract safe-haven funds to the currencies of both countries.
At the same time, the UK's economy in the second quarter has shrunk for the first time since 2012, and the pound against the US dollar fell to a 31-month low. After the Italian coalition party raised a no-confidence motion against the ruling coalition, Italian public debt was sold off, which also aggravated global tensions. The party’s populist leader Salvini hopes that this will trigger early elections and make him a new leader. However, the euro has not been affected too much and maintained a moderate gain during the day.
Analysis of major currency trends:
EUR/USD: The session opened at 1.1198 during the session and consolidated in the session, eventually closing at around 1.1198, up 0.82% this week. From a technical point of view, the MACD red kinetic energy column is steadily stretched, and the KDJ indicator is at a high level, indicating that the exchange rate rebound momentum may continue. The initial resistance of the exchange rate is at 1.1215, the further resistance is at 1.1250, the key resistance is at 1.1270, the initial support for the downside is at 1.1160, the further support is at 1.1141, and the more critical support is at 1.1105.
GBP/USD: The session opened at 1.2077, and the pressure fell sharply during the session, eventually closing around 1.2034, which fell 1% this week. From a technical point of view, the MACD green kinetic energy column continues to shrink, and the KDJ indicator is lower again, indicating that the short-term action under the exchange rate is still being released. The initial resistance of the exchange rate is at 1.2180, the further resistance is at 1.2242, and the more critical resistance is at 1.2267. The initial support for the downside is at 1.2092, the further support is at 1.2050, and the more critical support is at 1.2005.
USD/JPY: The session opened at 105.56, which rose slightly during the session and eventually closed around 105.66, down 0.86% this week. From a technical point of view, the MACD green kinetic energy column contracted slightly, and the KDJ indicator had a low dead end, indicating that the recent decline in the exchange rate has not yet reversed. The initial resistance of the exchange rate is at 106.28, the further resistance is at 106.50, the more critical resistance is at 106.69; the initial support for the downside is at 105.87, the further support is at 105.67, and the more critical support is at 105.46.