Currency Call Mid-Day Update (08 July 2021)

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#OPINIONLEADER#

During today’s Currency Call, Gim Hong highlighted the following points:

  • Not much details on QE tapering were provided in the FOMC monetary policy meeting minutes.
  • Various FOMC committee members expect QE tapering to start earlier than previously expected.
  • Several committee members were concerned about longer-term inflation expectations rising to inappropriate levels if high inflation persists.
  • On QE tapering, some members felt that it is beneficial to cut back on mortgage-back securities purchases earlier than Treasury bonds purchases due to the valuation pressures in the housing markets.


Scott highlighted the following points:

  • Wait and see how the weekly candle of the U.S. dollar index closes before looking for trading opportunities.
  • Nonetheless, an aggressive trade to take up will be to wait for the H4 candle to close later at 8pm (GMT+8) and if it breaks above the 92.70 level, looking for short-term buying opportunities.


Jin highlighted the following points:

  • Look for selling opportunities of USD/JPY if it rejects the 111.16 level. A risk-averse trade will be to wait for USD/JPY to break below 110.40 before selling.
  • Look for selling opportunities of EUR/JPY if it rejects the 130.51 resistance level and break below the 130.35 level.
  • Look for buying opportunities of EUR/JPY at 130.70 if it breaks the 130.51 resistance level.
  • Look for buying opportunities of GBP/JPY at 152.50.
  • Look for buying opportunities of XAU/USD (Gold) only after a retracement.


During the day, USD/JPY, GBP/JPY and EUR/JPY weakened while XAU/USD strengthened.

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Watch the full session of the Currency Call here:



Join the Daily Currency Call from Mondays to Fridays at 1100 (GMT+8).

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