Forex Analysis

The Global Macro Pulse

EURUSD rose to 1.3399 from its overnight lows around 1.337, while USDJPY is at 102.77 after trading as high as 103.09.

We expect euro flash CPI for July to reach a new cycle low at 0.4% y/y (consensus0.5% y/y) down from 0.5% y/y in June.

Especially US bonds took a beating yesterday after better-than-expected GDP numbers (see more below).

The pair fell to a new 2014 low of $1.3367 in overnight dealings following the US GDP data and started the session today at $1.3397.

The pair closed in NY Wednesday at $1.6913 after rate recovered off lows of $1.6890.

The pair ran up to a Y103.15 high last night in the US in the wake of the US GDP data and the FOMC decision,

In the statement today the Fed made a change in a more hawkish direction by

A modest downside extension has taken the Euro below the key 1.3400 level this morning,

The Swiss continues to slide further to the downside, although losses have been rather subdued given today’s disappointing Swiss data.

With a clear lack of flight to safety support this week, the Yen has continued with a slow and steady grind tothe downside.

The Dollar was able to extend its current up move to new high ground during the overnight session,

The floor has fallen out below the Canadian this week, which is finding little help from