Forex Market
GBP/USD Analysis
Closed in NY at $1.5540, off session lows of $1.5531 after rate lost further ground following the FOMC announcement. Lack of new measures disappointed those expecting something more dovish and caused a spike higher in the dollar.
EUR/USD Analysis
Closed in NY at $1.2230, off post FOMC inspired lows of $1.2218 after the Fed disappointed markets with no new measures announced. Rate extended its recovery into early Asia to $1.2245 as early traders reacted to a report in Sueddeutsche Zeitung suggesting the ECB today will unveil a two pronged plan to support the euro.
Asian Currencies Technicals
AUD/USD: Fails at the $1.0556 hurdle. Following yet another fresh 4 month high the AUD/USD reversed sharply from just short of the Mar 27 highs that were initially targeted.
GBP Analysis
Opened early Europe at $1.5663, stg0.7848, GBP closed in NY at $1.5673 after settling between $1.5665/85 through the NY afternoon, this after rate had recovered from earlier lows of $1.5625 to the NY high of $1.5698.
EUR Analysis
Opened early Europe at $1.2292 EUR/USD closed in NY at $1.2303 after rate had recovered from lows of $1.2270 to $1.2330 in this session (Europe morning low $1.2249).
JPY Analysis
Opened in early Europe at Y78.15 and Y96.25, opened in Asia at Y78.10 and initially showed early gains to Y78.17 ahead of China PMI data, before coming under pressure on release of weaker than expected numbers that had expanded at the slowest pace in 8 months.
Technical Analysis
Waiting for the Fed today and ECB (& BOE) tomorrow… EUR/USD Into a final correctional high… EUR/JPY Lagging EUR/USD… EUR/GBP Could also stretch for ~0.7910… EUR/SEK Rechecking resistance… EUR/NOK Sits below mid-body resistance… EUR/HUF U-turned at trendline support.
FX Market Technical Research
EUR/USD: Recovers 21-Day Moving Average. The euro recovers the 21-day moving average of $1.2264, which turns support and makes a bull-cross with the 5-DMA at $1.2290 as the daily stochastic study continues to recover.
USD/JPY Analysis
The USD closed on a heavy tone in NY around Y78.10, off earlier Y78.30 intraday highs. The rate initially showed early gains to Y78.17 ahead of China PMI data, before coming under pressure on release of weaker than expected numbers that had expanded at the slowest pace in 8 months.
GBP/USD Analysis
Closed in NY at $1.5673 after settling between $1.5665/85 through the NY afternoon, this after rate had recovered from earlier lows of $1.5625 to the NY high of $1.5698.
EUR/USD Analysis
Closed in NY at $1.2303 after rate had recovered from lows of $1.2270 to $1.2330 in this session (Europe morning low $1.2249). Rate marked highs into Asia at $1.2305 before continuing to slip lower, meeting initial support into $1.2290.
Asian Currencies Technicals
AUD/USD: Focus remains on higher levels. Oscillation around the rising 21 day upper Bollinger band continues ($1.0515) as the pair edges closer to the March 27 highs with overall focus remaining on tests of the $1.0856 2012 highs.