USD/JPY has been trading in a relatively quiet (~90 pips) range this week - a new trend leg in the making. Main event risks are FOMC Minutes later today, U.S./China tariff exchange tomorrow morning and then U.S. labour market report in the afternoon. 100 - 100.25 (includes 200 DMA) is the support and 111 - 111.25 the resistance.
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USD/CAD broke below 200 DMA
U.S. inflation report came in solid yesterday, FOMC Minutes were hawkish. Headlines regarding military intervention in Syria, however, have kept risk assets contained, as have renewed trade concerns. Canadian dollar is one exception, had a great week so far. USD/CAD fell about 270 pips (high to low) but momentum appears to be easing into 1.25 support. Broken 200 DMA should now act as an initial resistance.
USD/JPY capped by 107.5 but for how long
Currencies didn't move much overnight after yesterday's recovery in risk assets and leg lower in the dollar. U.S. inflation report and FOMC Minutes later today could act as a catalyst for USD/JPY to leave its 90 pip weekly range. A break above 107.5 seems inevitable at this point. 106.5 is the initial support.
Cable snaps back, PMIs not helpful
GBP/USD topped out near 1.3610 just before E.U. session commenced. Two weaker than expected PMIs in a row didn't help the pair, which snapped back to 1.35. Possibly also some profit taking ahead of FOMC Minutes in a couple of hours.
U.S. dollar weakens ahead of holiday
FOMC Minutes highlighted the division among officials on inflation outlook, though majority still think inflation will ultimately pick up. December hike is virtually a done deal but what comes after that will increasingly hinge on inflation progress. U.S. dollar was sold ahead of and after the release.
FOMC Minutes seen as mildly dovish
As expected, there was nothing shocking in the Minutes of the FOMC meeting that concluded on September 20th. Division between those who believe that inflation is low due to transitory factors and those who think it's just a new normal, is nothing new but the market seemed to take this as a mildly dovish sign.
U.S. dollar has already been weakening this week and, after a minor whipsaw, prices just continued on the path of least resistance. December hike from the Fed is pretty much priced in at th…
U.S. dollar has already been weakening this week and, after a minor whipsaw, prices just continued on the path of least resistance. December hike from the Fed is pretty much priced in at th…
FOMC MEETING OVER VIEW
The minutes of the Federal Reserve’s May policy meeting that were released on Wednesday indicated that the US central bank remained on track for more rate increases this year. Most FOMC members thought it was appropriate to hike soon.Usd will be very strong this year. Overall growth looking good.US Jobless Claims Below ExpectationsUS Jobless Claims Below 240K For 3rd WeekUS Industrial Output Rises The Most In 3 YearsUS Consumer Sentiment At 4-Month High
The Time For An Onslaught Has Come
US Dollar Starts An Onslaught of Other Currencies
The US dollar came back strong the during Asian session going higher across the board even against yen, the aussie dollar and kiwi. It is also suddenly higher against euro which dipped below 1.0600 level and the pound which is coming dangerously to 1.2400 levels. Since both euro and the pound usually have limited flows in Tokyo session, these moves could imply a high level of volatility we might experience during the next 48 hours, until the FOM…
The US dollar came back strong the during Asian session going higher across the board even against yen, the aussie dollar and kiwi. It is also suddenly higher against euro which dipped below 1.0600 level and the pound which is coming dangerously to 1.2400 levels. Since both euro and the pound usually have limited flows in Tokyo session, these moves could imply a high level of volatility we might experience during the next 48 hours, until the FOM…
USD & FOMC
Saludos!!
Hoy se dieron a conocer las Actas de la FOMC. Y como era de esperar, prevaleció el tono austero característico de la entidad. No es posible saber si los tipos de interés subirán dentro de este año, o se relegara para el siguiente.
Personalmente, estoy cansado de estas reuniones de la FOMC que no llevan a nada. Me ponen de muy mal humor, y presiento que a muchos operadores en el mercado les sucede lo mismo. Hace unos días atrás, un destacado miembro de la FOMC indico que verían muy opor…
Hoy se dieron a conocer las Actas de la FOMC. Y como era de esperar, prevaleció el tono austero característico de la entidad. No es posible saber si los tipos de interés subirán dentro de este año, o se relegara para el siguiente.
Personalmente, estoy cansado de estas reuniones de la FOMC que no llevan a nada. Me ponen de muy mal humor, y presiento que a muchos operadores en el mercado les sucede lo mismo. Hace unos días atrás, un destacado miembro de la FOMC indico que verían muy opor…
JPY continues to rally after Dovish FOMC minutes
Overnight: After yesterday’s dovish FOMC Minutes, where several member argued against a rate hike in April, the Japanese Yen continued to appreciate.
Elsewhere, commodity linked currencies held on to its gains following the oil surge seen during the New York session.