Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Source: PaxForex Premium Analytics Portal, Fundamental Insight

Trade data out of Japan reminded forex traders that the global economy is in worse shape than what economists have expected or what markets have priced in. Japanese All Industry Activity Index increased sharply, but supermarket sales plunged. The USDJPY started to move lower and is now trading below a strong horizontal resistance area. Where will price action move from here? Today’s fundamental analysis will take a look at price action in both directions.

PPI data out of the US is expected to show the absence of inflationary pressures on the producer level while initial jobless claims are anticipated to remain near record lows. The focus has shifted from the Fed to the phase one trade deal between the US and China which appears incomplete. Some analysts expect it to be signed in December, but details remain scarce and conflicting. How will the USDJPY be impacted following the release of today’s data? Today’s fundamental analysis will take a look at price action in both directions.

All eyes will be on today’s US ISM Non-Manufacturing Index after the ISM Manufacturing Index showed the worst reading in ten years. The US Dollar has maintained its bullish stance against the Japanese Yen, how much longer will this trend last? Forex traders will also get factory orders which are expected to show a contraction, how will this impact the USDJPY which currently tests support? Today’s fundamental analysis will take a look at the downside potential and the upside risk in this currency pair.

Today’s CPI data out of the US is expected to confirm the absence of inflationary pressures. The US Fed will meet next week and markets expect a 25 basis point interest rate cut to be delivered. President Trump has stepped up his attacks on the Fed, led by Powell whom he appointed as Fed Chief, and suggested the Fed should consider negative interest rates. He further pointed out that the US should rebalance its debt load which is above 100% of GDP. Can the US Dollar handle a more dovish central bank and how will this impact the USDJPY?

Japanese economic data this morning came in mixed as retail sales disappointed with a bigger than expected contraction and vehicle production contracted in July. On the bright side, July industrial production rebounded as the jobless rate decreased and new construction orders surged. The Japanese Yen was able to advance slightly after the release of the data which kept the USDJPY hovering just below resistance levels.

Financial markets remain under a high degree of volatility with forex traders zoomed in on the People Bank of China and where it sets the Yuan rate, which for the first time was placed above the key 7.00 mark. While US president Trump is using Twitter to express his anger and claim victory is near, China reported a surprise increase in exports which saw its trade surplus swell further. The USDJPY came under more selling pressure, will bears force a breakdown below support or will bulls hold their ground?

After the US Fed cut interest rates by 25 basis points as expected, the US Dollar increased against major currencies. This move was caused as Fed Chief Powell stated this was not the start of an interest rate cut cycle. Yesterday’s Chicago PMI slumped deep into contractionary territory, but forex traders ignored the negative economic news as well as the interest rate cut. How long can this disconnect last and is now the time to short the USDJPY? Which impact will today’s ISM Manufacturing Index have on the US Dollar?

Forex traders will get US housing data as well as a regional manufacturing index which is expected to add volume to US Dollar trades. Regional reports have come in mixed and highlighted cracks in the US economy. The USDJPY advanced off of its lows, but remains stuck in a tight trading range as an interest rate cut by the US Fed looms as the economy is cooling. Can bulls attempt a breakout or will bears force a reversal? Today’s fundamental analysis will take a look at the upside and downside potential of this currency pair.

As the G-20 summit is approaching and US President Trump and Chinese President Xi are scheduled to meet on the sidelines in order to discuss a potential end to the trade war, the US Dollar has rallied. Hopes are riding high, but forex traders will get a heavy dose of US economic data to digest before then. A final reading on first-quarter GDP will likely dictate price action. How will the USDJPY react to any surprise?

All eyes will be on today’s FOMC statement by the US Fed which will be released in the US evening trading session. Expectations call for no change to its interest rate, but for a softening of the language which is meant to prepare markets for an interest rate cut in July and potentially one more before the end of the year. US President Trump has long criticized the US central bank for increasing interest rates which he believes have harmed the economy.

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here is the key factor to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades:

Here are the key factors to keep in mind today for US Dollar trades: