Forex Market

USD/JPY ANALYSIS

Opened in Asia at Y77.45 after slipping back yesterday from Y77.81 to lows of Y77.29 in NY. Exporters and custodial names opened the selling in EUR/JPY and AUD/JPY which in turn impacted on the USD. The pair slid to Y77.27 before bouncing back towards Y77.45.

Asian Market Summary

EUR/USD opened in Asia at $1.3109 after slipping back from NY highs of $1.3184 on soft US housing data and comments from Juncker that the ECB wouldn’t accept losses on Greek debt which weighed on sentiment.

GBP/USD ANALYSIS

Opened early Europe at $1.5665 stg0.8379 GBP closed in NY at $1.5660, off FOMC inspired recovery highs of $1.5679. Holiday thinned Asia saw cable consolidate the move, with trade contained within a very tight range of $1.5651/65.

EUR/USD ANALYSIS

Opened early Europe at $1.3125 EUR/USD closed in NY at $1.3107, having corrected from a low of $1.2931 to $1.3121 as markets reacted to the dovish FOMC comments. With Australia and India closed for holidays, and China for the week, it made for a very thin Asian market to ponder last night’s events.

JPY ANALYSIS

Opened in early Europe at Y77.59 and Y101.79 Opened in Asia at Y77.78 after falling back from NY highs of Y78.28, The FOMC brought risk back on to the table which sparked a massive risk rally in the EUR and Gold.

FX Daily Strategist: Europe

Commodity currencies well placed to benefit post-FOMC The FOMC statement overnight was rather dovish and should see the USD sell off versus the commodity currencies. The announcement has seen nominal yields declining even as inflation expectations move higher.

Behavioral Finance: Daily Forex Outlook : Fed: Novelty trumps content

EUR USD (1.3110) The Fed guidance on ‘exceptionally low’ interest rates until late 2014 sparked a rally in equities and a dollar sell-off. The subsequent hair-splitting in the market on what range of interest rate the words ‘exceptionally low’ actually might imply, or the attributing of dovish and hawkish stance to particular members, does not […]

Technical Analysis

More dollar weakness seen overnight post Fed. We are looking for a marginally new dollar low today however followed by an almost immediate u-turn. EURUSD looks to have potential above 1.3121 but below 1.3199, GOLD passed a bullish milestone yesterday, USDJPY stalling on back of lower US bond yield, EURSEK underpinned by a potential bull […]

FX Market Technical Research

EUR/USD has cleared this years high at 1.3077 and remains upside corrective. The market is poised to encounter the 1.3141/45 resistance, this is the October low and 55 day ma, between here and the 1.3245/50 zone (38.2% retracement of the move down from October) we expect to see failure.