USD index opened with a 0,5% gap getting back to August close level. Yesterday labor department released news about producer price index for August which lost 0.1% last month, ignoring experts’ forecast for a 0.2% rise. For the last year, the producer price index rose by 3%.
The rising of oil prices and the Canadian dollar were the reason for falling dollar, also investors drew attention to the positive sentiments about the NAFTA agreement between the US and Canada.
Technically, the pair USDCAD rebounded from the strongest support at the 1,2970 while Cayman was showing 37% of buyers and it almost doesn’t have any chances to keep on falling.
The USDJPY bulls were under the pressure on the morning trading session. Probably, investors are impressed by the trade talks between US and China soon.
Generally, the pair has been trading in the lateral trend but it has many premises to fall. For example, the pair reached its local high at 111,65 trading now for 30 points lower. Also, the Cayman and RSI indicate that the pair is almost in overbought zone. That’s why we are going to sell USDJPY from current levels.
So, our targets for:
USDCAD – is buying to 1, 3075
USDJPY – is selling to 110,5