Yen Dominates as Key Player in Today's Forex Market
07 December 2023
Today's calendar is unusually quiet for a weekday typically bustling with activity. The only significant data point is the unemployment claims from the US, forecasted at around 221,000. It will be interesting to see if this expectation is met and how it will impact the markets.
In the Currency Market: The Japanese Yen is stealing the spotlight today, emerging as the strongest currency. This is a notable shift from yesterday when the New Zealand Dollar and the US Dollar led the pack. Today, currency pairs involving the Yen, like EURJPY and AUDJPY, are experiencing significant movements. EURJPY has plummeted to its lowest since mid-October, while AUDJPY has breached the critical 96.8 support level, signaling a strong sell.
On the Indices Front: We're witnessing a continuation of the bearish trend, particularly evident in the American indices like S&P 500, Dow Jones, and NASDAQ. Yesterday's trading session ended on a rather pessimistic note for these indices. Meanwhile, the German DAX, although undergoing a slight correction, is still showing signs of resistance against the downward trend, unlike its American counterparts.
Commodities in Focus: Silver is on track for its fourth consecutive day of decline, with each day's drop being marginally lesser than the previous. The spotlight, however, is on oil, which has hit new mid-term lows. With the significant fall observed yesterday, key support levels for Brent at $72 and WTI at $63 are now within reach. The likelihood of hitting these figures seems strong, given the current trajectory.