Currencies: US Dollar Index (DXY) Higher On FOMC Minutes

Posted by: : Paul EbelingPosted on: February 20, 2014 Currencies: US Dollar Index (DXY) Higher On FOMC Minutes
Currencies: US Dollar Index (DXY) Higher On FOMC Minutes
The Dollar Index climbed to a session high near 80.20 following the release of the latest FOMC minutes. 
The minutes suggested the US economy continues to strengthen at a moderate pace, and discussed the possibility of the Committee altering its forward guidance as the unemployment rate approaches the 6.5% threshold.
  • EUR/USD is -20 pips at 1.3735 as trade pressed session lows. The pair held little changed ahead of the FOMC minutes before sellers took control following the release. Participants continue to see the 1.3700 area as support into Thursday’s release of Flash Manufacturing and Services PMI data from across the region.
  • GBP/USD is +5 pips at 1.6685 as action hovers little changed. Cableran into some early selling following the morning’s uptick in the unemployment rate to 7.2% (7.1% past), but saw a steady bid throughout much of US trade erase those losses. Near-term support stands in the 1.6600 area. Britain’s CBI Industrial Orders are due Thursday.
  • USD/CHF is +20 pips at .8890 as buyers take control for the 1st time in 5 days. Early selling dropped the Suisse to its lowest levels of Y 2014 at .8855, but trade reversed course and is pressed the highs. The 1st level of resistance stands at .8940.
  • USD/JPY is +5 pips at 102.40 as trade tests session highs. A quiet day for news and data out of Japan has seen trade trapped in the 102.00/102.50 area.
  • AUD/USD is -30 pips at .8995 as sellers took control after the FOMC minutes. The selling has dropped the Aussie to its lowest mark in 3 days, and has turned focus towards support at .8950. China’s HSBC Flash Manufacturing PMI will cross the wire tonight.
  • USD/CAD is +130 pips at 1.1075 as Wednesday’s bid has erased 10 days of action. The pair was aided by Canada’s disappointing wholesale sales (-1.4% M-M actual Vs. -0.5% M-M expected) and Canadian Natural Resources’ $2.8-B acquisition of Devon Energy Nat Gas assets.

Stay tuned…

HeffX-LTN

Paul Ebeling

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Paul Ebeling

Pattern Recognition Analyst, equities, commodities, forex
Paul Ebeling is best known for his work as writer and publisher of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly-regarded, weekly financial market letter, where he enjoys an international audience among opinion makers, business leaders, and respected organizations. Something of a pioneer in online stock market and commodities discussion and analysis, Ebeling has been online since 1994. He has studied and worked in the global financial and stock markets since 1984.
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