Forex Analysis
EUR/USD Analysis
The pair closed in NY Wednesday at $1.3685 after a volatile reaction to the Fed’s announcement to taper QE by $10bln pm. Rate initially dropped to $1.3705 but quickly rallied back as any hawkish feel was quickly quashed by
USD/JPY Analysis
The pair opened higher at Y104.28 while euro-yen also higher at Y142.71 in Asia post FOMC and pulled back lower from session highs of Y104.38 & Y142.84 to hit daily lows of Y103.78 & Y142.84 respectively.
The Australian economy & financial markets in 2014
The US, EU and Asian economies have shown an improving growth outlook in recent months that should carry into 2014. It hasbeen a positive development for financial markets to see downside growth risks and volatility receding.
AUD/USD Analysis
Aussie in a fairly narrow range over the Asian session, trading $0.8823/61. Most of the morning was spent recovering slightly after touching $0.8821 post-FOMC. Some unwinding of short AUD/NZD positions and
EUR Mid-day Analysis
The FOMC meeting is casting a long shadow across the Atlantic, as the Euro continues to have troublebuilding on recent gains. Mixed results with today’s German Ifo survey have also taken some of the sting out ofthe Euro,
CHF Mid-day Analysis
In spite of a large jump in the ZEW survey of Swiss investor sentiment, the Swiss Franc has made asizable downside move early in today’s trading. Yesterday’s 1-year high versus the Dollar and
JPY Mid-day Analysis
Sizable year-on-year gains on both the export and import sides of the equation could not prevent theJapanese Trade deficit from reaching a record level, which has weighed on the Yen coming into this morning’strading.
USD Mid-day Analysis
While it has found modest early support this morning, the Dollar has remained firmly within a tightovernight range as it prepares for this afternoon’s much-awaited FOMC meeting announcement.
The Global Macro Pulse
The 10y US yield has bounced slightly higher to 2.8445% in Asia trading after the 4bp fall overnight. The USD is relatively steady against majors but strengthened against most EM Asian currencies ahead of tonight’s FOMC.
FX Daily
Today is the day we expect the Fed to start tapering asset purchases. We believe the Fed will taper by USD10bn but at the same time strengthen the forward guidance by revising lower the profile for the Fed Funds rate to
GBP/USD Analysis
The pair closed in NY Tuesday at $1.6266 after recovering off a session low of $1.6214 to $1.6280 before drifting off into the close. The pound had lost ground Tuesday following the release of softer than forecast UK inflation data,
EUR/USD Analysis
The pair closed in NY Tuesday at $1.3767 after rate had pulled back from an early Europe high of $1.3782 to a late Europe-NY low of $1.3723 before recovering to $1.3775 ahead of the close.