Forex Market
FX Daily Strategist: Europe
– Fed delivers QE, further USD weakness is in scope The Fed delivered open-ended QE and committed to balance sheet expansion until the labour market improves substantially. The market reaction in the immediate aftermath i.e. sharp rally in equities, gold, and US TIPS inflation expectations and the sharp sell-off in USD plays to the strong […]
European FX Daily
– EURUSD traded above 1.30, AUDUSD towards 1.059 – We expect US retail sales and IP stronger than consensus – We have revised our EURUSD three-month forecast higher to 1.23
FX Market Technical Research
EUR/USD: Focus Now Turns To 2012 Highs. The EUR/USD continues to distance itself from the 200-DMA with the pair now trading above the previous resistance at $1.3000.
GBP/USD Analysis
Closed in NY at $1.6152 after the post FOMC rally took rate to $1.6174 and then pulling back to $1.6138. Rate eased off to $1.6145 in early Asia before fresh demand emerged as equity markets opened on a positive note, which in turn boosted general risk appetite.
EUR/USD Analysis
Closed in NY at $1.2988 after rate had eased off post FOMC react highs at $1.3002 to $1.2977. Rate drifted down to $1.2980 in early Asian trade but buyers emerged as China equity market opened with a positive tone which provided a fresh boost for risk.
AUD/USD Analysis
From reports coming in from Asia traders the Aussie was the standout performer in overnight trade. Rate opened at $1.0547, having seen post FOMC react highs of $1.0569 before it pulled back to $1.0536 ahead of the close.
USD/JPY Analysis
The dollar was off early lows against the Japanese unit, but still pressured, despite jawboning from Japanese officials. Dollar-yen was last at Y77.63, the upper end of the session’s Y77.46 to Y77.67 session range.
Asian Currencies Technicals
AUD/USD: Rally Falls Just Short Of Rising Bollinger. The push towards the Mar 19 highs continues with the pair falling just short of a 21 day upper Bollinger band test overnight.
FX Market Analysis
GBP: Opened early Europe at $1.6118, stg0.8019, Cable closed in NY at $1.6108, having seen highs intraday of $1.6131 before pulling back to $1.6081.
AUDUSD nearing big resistance lines ahead of FOMC trigger
As we await the FOMC outcome much later today, it’s worth zooming out and looking at the bigger technical picture in the likes of AUDUSD, which tends to be a big mover on QE/risk appetite themes.
FX G10 and EM Morning Trader Views
G10 EUR – Dips remain shallow barring 1 crazy sell off pre the esm vote in Germany yesterday down to 1.2815 – We go into the FOMC today against some pivotal resistance lvls at 1.2950/80/1.30 a break and close above 1.3050 would create further pain for the remaining shorts however its unlikely we see that […]
FOMC…what’s required tonight to surprise mkt ?
* The FOMC’s statement must exceed expectations to push prices higher * This means adding 2016 rate guidance or buying duration equal to or larger than ‘Operation Twist’ or both * Aggressive language changes have had significant market impact for bonds and stocks, while recent balance sheet moves have had limited market impact