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.
al_dcdemo's Blog
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…