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Pound Sterling (GBP) is likely to trade in a range between 1.3385 and 1.3435. In the longer run, if GBP breaks clearly above 1.3475, it could rise further to 1.3505, potentially testing 1.3530, UOB Group’s FX analysts Quek Ser Leang and Peter Chia note.

China’s Ministry of Foreign Affairs on Tuesday said resource-rich countries should play a proactive role in bolstering their rare earth supply chains.

EUR/USD remains almost entirely driven by US credit/equity sentiment: here, further stabilisation could take EUR/USD all the way to 1.160. Levels below that will be harder to justify unless the US CPI on Friday comes in hotter than expected, ING’s FX analyst Francesco Pesole notes.

Statistics Canada will publish September’s inflation figures on Tuesday. The numbers will give the Bank of Canada (BoC) a fresh read on price pressure as the central bank weighs its next move on interest rates.

AUD/JPY recovers its daily losses and continues its winning streak for the third successive session, trading around 98.30 during the European hours on Tuesday. The currency cross gains ground as the Japanese Yen (JPY) remains subdued after Sanae Takaichi became Japan’s Prime Minister.

The pair moved up to a high of 151.60 earlier as Sanae Takaichi won her bid to become Japan’s next prime minister. The nudge up stalled upon testing the 200-hour moving average (blue line) before falling back to 151.06. But in the past half hour, we’re starting to see buyers step back in as price moves back up to 151.60 again:

It’s a second attempt to firmly break above the 200-hour moving average, which rests around 151.52 currently. Hold a break above and the near-term bias switches to being more bullish for the pair. And as mentioned earlier, that will then free up room for buyers to try and look towards a potential test of the monthly high at 153.27 down the road.

Takaichi may be a fiscal dove and markets are reacting to that. However, there will be a lot for her to try and deal with in the coming weeks/months: What are the main challenges for Japan’s first female prime minister Takaichi?

This article was written by Justin Low at investinglive.com.

According to media reports, conservative politician Sanae Takaichi has been elected Japan’s first female Prime Minister. As we noted on 7 October, she is a supporter of former Prime Minister Shinzo Abe’s Abenomics strategy, aimed at stimulating the economy through aggressive fiscal spending and ultra-loose monetary policy — a factor that fuelled the sharp A→B […]

The post USD/JPY Analysis: Yen May Stabilise Following Prime Minister’s Election appeared first on Action Forex.

The British Pound keeps a mild positive tone against the Yen on Tuesday, but has retreated from session highs at 202.80 to levels around 202.30 at the time of writing, which leaves the pair wavering without a clear direction, within the last week’s trading range.

The British Pound keeps a mild positive tone against the Yen on Tuesday, but has retreated from session highs at 202.80 to levels around 202.30 at the time of writing, which leaves the pair wavering without a clear direction, within the last week’s trading range.

The USD/INR pair ended Monday’s session with almost 0.1% losses to near 88.00. On Tuesday, Indian markets are closed due to Diwali Laxmi Pujan and will also remain closed on Wednesday on account of Balipratipada.