Forex Market
USD/JPY Analysis
Closed in NY at Y78.25, having eased off earlier Y78.53 highs. USD/JPY slipped in early Asia as equities opened sharply lower, macro account supply added weight and the pair printed Y78.07.
GBP/USD Analysis
Closed in NY at $1.5515 after rate had seen a spike high of $1.5680 into ECB Draghi’s press conference, only to drop back to $1.5490 as comments failed to live up to market expectations.
EUR/USD Analysis
Closed in NY at $1.2180, off lows of $1.21335, following a whippy session driven by ECB Draghi’s press conference which had seen rate spike to $1.2406 on anticipation of announced euro support.
Asian Currencies Technicals
AUD/USD: Spike lacks follow through. A whippy past 24 hours for the AUD/USD with a spike above the upper 21 day Bollinger band to fresh 4 month highs lacking follow through.
Draghi talks tough, but Euro hits airpocket on lack of specifics
Draghi unleashed a string of firm-sound rhetoric to open the ECB press conference, touching on a number of key areas, but the lack of “real action right now” has the market in a big knee-jerk disappointment.
GBP Analysis
Opened early Europe at $1.5542, stg0.7882, GBP closed in NY at $1.5540, off session lows of $1.5531 after rate lost further ground following the FOMC announcement.
EUR Analysis
Opened early Europe at $1.2250, EUR/USD closed in NY at $1.2230, off post FOMC inspired lows of $1.2218 after the Fed disappointed markets with no new measures.
JPY Analysis
Opened in early Europe at Y78.45 and Y96.15, USD/JPY opened flat in Asia around Y78.40, before catching a bid tone and lifting to Y78.54 after the Tokyo fix. Traders noted of profit taking off highs as the pair consolidated post FOMC gains.
USDJPY is worth a look, too.
Yes, of course the Euro is in focus today with the ECB, but it’s perhaps best to wait at least until the end of the day to try and draw any questions. Meanwhile, USDJPY made an interesting statement yesterday.
Technical Analysis
Commodity FXers, scandies & dollar favored… EUR/USD One down (Fed) two more to go… EUR/GBP Move higher corrective – so far… USD/JPY Small bullish step taken… EUR/SEK Lowering target to mid-8.2s… EUR/NOK Grinding into the recent lows.
FX Market Technical Research
EUR/USD: Recovers 21-Day Moving Average. The bulls-crossed 21 and 5-DMAs provide initial support/resistance at $1.2248/75 as the daily stochastic study continues to recover.
USD/JPY Analysis
Closed in NY at session highs Y78.50 on broad USD demand following the Fed announcement of no new policy, a report from the IMF that said Japan needs to ease further in order to beat deflation aided the move.