Sharp USD weakness has been seen overnight despite if anything US yields marginally higher. Some attribute the move to a sense that a republican administration would support a weaker Greenback
That is yet to be seen but we have broken some good levels overnight.
USDJPY has broken both rising trend line support at 157.56 and the 55-day MA at 157.61 with a wide gap to the rising 200-day MA at 151.36. With horizontal support also at 151.86-97 It has been above the 55-day MA since March and a close below would open up for a move to that 200-day MA. There is also a danger of a bearish monthly reversal IF we were to see a close below 154.55
EURUSD has also broken back over 1.0916 (76.4% pivot) in addition to completing an inverted head and shoulders. The suggests (If this break is sustained on a close) a move towards 1.1240 could be on the cards. Similarly, the USD-Index has broken good support at 104.00 suggesting we can see a move to at least 102.35 and below that possibly 100.62
On GBPUSD a test of 1.3142 again looks likely. Above there would open up 1.3320
Yields
US 2's, 5's and 10's all consolidating now around good support levels after a decent move lower
2's 4.40-4.42%
5's 4.07-4.09%
10's 4.16-4.18%
Japan 10-year yield has moved sharply lower in recent days after double topping around 1.10%. Next good support is at 97 bp's here
Gold broke to new all-time highs and looks set to continue towards $2,620-2,640. Silver also remains bid but no such strength looks obvious at the moment in industrial metals, softs or energy.
It's 17th July and the equity market is soft this morning. Read yesterday's note titled What is it about 17th July for perspective
