The Forex Market Insight Report shows charts on different major currencies and commodities, with brief commentaries on how new data releases and news cause movements in the market.

Headline:

  • ECB and BoE both keep rates on hold.
  • EUR/USD and EUR crosses smashed as the ECB indicates that a rate rise next month is not likely.
  • AUD continues lower as risk assets are avoided by investors.
  • Commodity markets smashed as global growth is questioned, Silver down 30% over the past week, Gold trades well lower and oil breaks below $100 a barrel.
  • For the second day straight worse than expected US job numbers cause concern for NFP tonight.
  • US equity markets sold down for the second day straight on the on poor jobs data with the Dow falling
  • 1.10%, S&P500 down 0.91% and Nasdaq down 0.48%.

AUD/USD
AUD continued lower as commodities were sold aggressively and risk currencies went out of favour. Even though we initially broke through there, the previous support around 1.0600 has provided some sort of support and traders are now cautiously looking to re-initiate longs thinking that this was the clean-out needed to start the march higher again.

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XAU/USD
Gold continued to get sold as extra margin requirements, bad US economic data and an extremely long market created the perfect storm as commodities across the globe got smashed (silver down 30% in the last week alone). In the cold light of a new day the bulls have emerged and are cautiously buying the dip looking for it to retrace back towards 1500 initially.

EUR/USD
The market was expecting no change in rates, but they were expecting some strong language from the ECB locking in another rate rise next month and this was firmly denied. EUR and EUR crosses sold incredibly hard and an almost 400 point drop ensued. Support found at the previous highs of 1.4500/20 and traders are initially bullish so long as this level holds.

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GBP/USD
Although GBP/USD was sold last night, aggressive EUR/GBP selling on the ECB comments helped cushion the fall and GBP only fell 100 points. It needs to be noted that on the longer term time-frame this 1.6300-1.6400 was an extremely strong level on resistance and now may provide support, although short term selling pressure remain for the time being

USD/JPY
USD/JPY continued to drift lower as the downtrend marches on. Worse than expected US employment numbers along with aggressive EUR/JPY and GBP/JPY selling helped USD/JPY to the lows. With NFP tonight, a worse than expected number could see continued downward pressure and traders are happy to continue selling unless we break back up through 81.00

AUD/JPY
AUD/JPY continued lower as the bears kept control of the market however the buyers came in towards the 84.00 support. From here traders are cautiously bullish as there is sentiment that this was the pullback we needed to start the march higher again, however a clean break through 83.70/80 could generate another bearish signal.

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OIL
Oil was not immune to the commodity markets downside move and the failure to break back above 110.00 kept the bearish sentiment firmly in place and the sellers had a massive day. From here there is an element of bullish sentiment in the market as many traders are calling for 96.00 to hold in the first instance looking for a retracement back towards 106.00 initially

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