Forex Analysis
Central European Daily
The Turkish rate hike calms markets for now The FOMC meeting in focus The Central European region has appreciated certain calm down on emerging markets.
Fragile EMs help JPY-bears repeatedly
The stocks and high yielding currencies of EM/resource countries (risk currencies) tend to rally when monetary easing stimulates global economic recovery. Strong risk currencies can have a bull cycle of fundamental factors.
The Global Macro Pulse
The USD lost ground against risk currencies ahead of the FOMC. AUD edged higher to 0.8805, NZD to 0.8277, leaving AUDNZD essentially unchanged at 1.0639 before the RBNZ meeting tonight.
FX Daily
We expect the Fed to cut its monthly bond purchases by an additional USD10bn in connection with today’s meeting and hence stick to its unofficial plan for tapering.
USD/SGD Analysis
The pair continues to pullback 4 days in a row, it opened at a high of Sgd1.2752 in early Sydney hours and slipped down to a session low of Sgd1.2719 before rebounding to Sgd1.2737 last.
EUR/USD Analysis
Poor durable goods data kept the euro supported overnight as it crept up to a high of $1.3673 in late NY session before Asia stepped in, it dived to $1.3649 after CBT hike rates in an unscheduled meeting.
GBP/USD Analysis
The pair closed in NY Tuesday at $1.6573 after rate had recovered off a post UK GDP low of $1.6536 to $1.6614 (though failed to retest early European highs of $1.6627) before it pulled back to
USD/JPY Analysis
The pair grinded higher to Y102.95 in late NY session before Asia stepped in, it gapped up to Y103.17 after Turkish central bank hike rates aggressively and the pair surged higher to hit session high of Y103.45.
BNZ Currency Research – NZD/JPY: An Innocent Victim of Risk Aversion
Despite the approach of one of the more important RBNZ meetings in recent times (the market prices a 40% chance of a hike this week) the recent drivers of the NZD lie elsewhere.
EUR Mid-day Analysis
The Euro is fighting a recovery in the Dollar this morning and news of an improvement in Italian consumersentiment and an abatement of emerging market fears have done little to cushion the Euro against downsidelosses on the charts.
CHF Mid-day Analysis
Negative chart action overnight coincides with a recovery in the Dollar and positive UK data flows.Clearly the flight to quality run up in the Swiss was partially the result of the
JPY Mid-day Analysis
A slight normalization of emerging market sentiment has seemingly taken the bid out of the Yen. However,with Asian equities remaining within close proximity to significant lows on their charts and