Forex Analysis
GBP/USD Analysis
The pair closed in NY Thursday at $1.6367 after rate had managed to recover off extended corrective pullback lows of $1.6335 to $1.6390 before it drifted lower into the close.
EUR/USD Analysis
The pair closed in NY Thursday at $1.3662 after rate had consolidated its post FOMC taper corrective pullback below $1.3700, with rate held within an intraday range of $1.3650/95.
USD/JPY Analysis
End of the week saw dollar-yen opened at Y104.24 while euro-yen opened at Y142.40, gotobi day demand lifted the rates higher to an initial high of Y104.44 & Y142.44 as offers & barrier at Y104.50 capped dollar-yen’s advance.
USDJPY – wave-4 A-B-C correction complete, rally to 104.60 now
The shooting star led to a muted decline to 102.50, far above our pullback target for wave-4. Yesterday’s price action indicates that the choppy sideways correction from 12/2 completed and wave-5 of (3) is well underway;
EUR Mid-day Analysis
Although it was able to put together a minor recovery from the 136.50 level, the Euro remains on thedefensive after taking out the highs and lows of the previous 8 sessions in the space of 2 minutes.
CHF Mid-day Analysis
With its safe-haven appeal eroded by the Fed’s tapering decision, the Swiss Franc continues to probe thedownside as it has fallen nearly 1.5 cents from yesterday’s highs this morning.
JPY Mid-day Analysis
As expected, the Yen was one of the main victims of tapering as there is now an even sharper contrastbetween the Fed and an accommodative Bank of Japan.
USD Mid-day Analysis
After seeing decent upside follow-through during overnight trading, the Dollar is starting to show signsof consolidation after one of the most vicious whipsaw market reactions in recent memory.
The Global Macro Pulse
The EUR edged down to a two-week low of 1.3657. AUD, NZD and CAD also fell. AUDUSD dropped to 0.882 and NZDUSD traded lower to 0.818, despite a much better than expect NZ GDP release.
FX Daily
On a day with mainly tier 2 data, markets are likely to further digest yesterday’s FOMC announcement . US initial jobless claims are due for release at 14:30 CET but
GBP/USD Analysis
The pair closed in NY at $1.6384 after rate had seen a pullback low of $1.6344 from $1.6410 on the Fed taper announcement, but quickly spiked back up to $1.6486 as accompanying comments countered the initial hawkish reaction.