Forex Analysis
FX Daily
Market movers today • German IFO expectations are projected to decline in line with the decrease seen in the German manufacturing PMI in June.
USD/JPY Analysis
The pair closed in NY Friday at Y97.90 after rate had seen session lows of Y96.87 earlier in the day in Asia before recovering to Y98.13 in Europe.
GBP/USD Analysis
The pair closed Friday’s NY session at $1.5419 after rate had been sold down from an early day high of $1.5523 to $1.5368 in early NY,
EUR/USD Analysis
The pair closed Friday’s session at $1.3122 after rate had seen a decent recovery off session lows of $1.3098 to $1.3159 before it drifted off $1.3118 ahead of the close.
Australian Markets Weekly
• The clarity provided on the FOMC’s intentions with regard to dialling down QE greatly improves our confidence in the AUD/USD downtrend being sustained.
Healthy Adjustments
Ructions in financial markets are normally a sign of trouble and so tend to have dovish implications for interest rates.
Two for the hawks, one for the doves
On balance, last week’s developments were a clear positive for New Zealand interest rates, with a more hawkish US Fed and
FX Comment: TIPSy
All the good things come to an end. Fed’s Bernanke left us with the impression that “this time is different”.
Weekly Economic & Financial Commentary
• The FOMC kept its current pace of asset purchases the same but signaled that it may begin tapering the pace of asset purchases later this year.
Monthly FX Outlook
• The US$ strengthened on the Fed’s perceived hawkish statement, and should gain further ground to eclipse year-to-date peaks on Fed tapering in Q4.
Currency analysis EURUSD
The Fed’s balance sheet has taken center stage on markets, which has also influenced the EURUSD exchange rate.
Mid-Day FX Market Analysis
USD: The Dollar is finding mild pressure early, but has given back little of the sizable gains posted during the past two days.