Forex Market
GBP/USD Analysis
Sterling pared losses against the dollar as cable recovered to highs of $1.5880, the rate later ground lower through the US afternoon to close at $1.5860 and hold above the 100-day ma.
EUR/USD Analysis
Closed in NY Thursday at $1.2780, the rate recovered off pullback lows of $1.2760 after earlier flushing stops to print highs of $1.2802. Euro-dollar had a lacklustre Asian session with trade confined to a tight $1.2764-85 range.
USD/JPY Analysis
The pair is likely to maintain a firm undertone today amid concerns that the main opposition, Liberal Democratic Party will defeat the ruling Democratic Party of Japan at the next month’s general election, and that the LDP will seek a more aggressive monetary easing.
Asian Currencies Technicals
AUD/USD: Overall Focus Now On Oct Monthly Lows. The pair has taken out the previously mentioned $1.0330-80 support region with the close below the 21-DMA, 100-DMA, rising daily channel base and Ichimoku cloud now shifting overall focus to retests of the Oct monthly lows.
Technical Analysis
Yen is notably weaker at the same time as S&P500 is accelerating lower, so little bit of a mixed picture there it seems… EURUSD is doing less, but could still extend the ongoing near-term correction somewhat higher (to test the 1.28-handle)…
GBP/USD Analysis
Cable bounced to $1.5875 on release of the FOMC minutes that revealed a number of committee members favoured more quantitative easing after the end of Operation Twist.
EUR/USD Analysis
Closed in NY Wednesday at $1.2735, the rate having slipped off post FOMC spike highs of $1.2780 after headlines in the statement said a number of committee members favoured more quantitative easing after the end of Operation Twist.
Daily Market Technicals
EUR/USD: Bulls Break Above 38.2% Resistance. The pair broke above the 38.2% retracement of the Jul/Sep rally at $1.2741, however selling pressure forced the pair back below.
USD/JPY Analysis
The pair is likely to trade with a mixed tone today in Asia as concerns about additional asset buying by the Fed offset expectations that the LDP, which is likely to win next month’s election, will press the BOJ harder to ease the monetary policy.
Asian Currencies Technicals
AUD/USD: Layers Of Support Back In Focus. The AUD/USD reversed sharply from a spike above the 21 day upper Bollinger yesterday and put in a bearish key day reversal, but this means little until the pair takes out layers of support in the $1.0330-80 region.
Mid-Day FX Market Analysis
EUR: Opened early Europe at $1.2717, Euro-dollar opened flat in Asia and lifted on euro-yen demand ahead of the Tokyo fix, the rate extended gains to $1.2715 as risk appetite improved across the board.
USD/JPY Analysis
Closed in NY Tuesday at Y79.40, the rate having recovered off pullback lows of Y79.35 after earlier posting a high of Y79.59. Euro-yen closed at Y100.87 after the rate bounced off pullback lows of Y100.61 in headline driven markets.