Currencies: USD Trading Flat Ahead Of Fed
The USD Index (DXY) trades little changed near 80.05 ahead of Wednesday’s FOMC rate decision. The DXY spent most of the overnight session hanging little changed before rising to session highs near 80.30 following Tuesday morning’s better than expected data.
The bid did not hold as trade faded back onto the Key 80.00 support mark ahead of Wednesday’s Fed decision.
EUR/ USD is +10 pips at 1.3770 as trade ticks higher for a 2nd session. Buying over the course of US trade has lifted action back towards the overnight highs just short of the resistance at 1.3800. That mark has been hard to crack since November 2011, and will be watched closely Wednesday. Eurozone data is limited to German Ifo Business Climate.
GBP/ USD is -25 pips at 1.6275 as trade looks to notch its lowest close in about a month. Early selling saw cable testing the 1.6215 area, but trade lifted off the lows after Bank of England (BOE) Governor Mark Carney suggested there would be a ‘great risk’ to scaling back policy too soon. Britain’s claimant count change and unemployment rate accompany the release of the latest Bank of England votes.
USD /CHF is -25 pips at .8845 as trade looks likely to finish at its worst levels since November 2011. Action in the pair continue to track that of the Euro as the Swiss National Bank maintains its EUR/CHF floor. Switzerland’s ZEW Economic Expectations will cross the wires Wednesday.
USD /JPY is -40 pips at 102.60 as sellers hold control for a 3rd session running. Recent trade stalled near 5 yr highs as trade remains on hold for Wednesday’s FOMC decision and Friday’s Bank of Japan (BOJ) announcement. Japan’s trade balance is due out tonight.
AUD/ USD is -45 pips at .8905 as trade tests the August lows. The Aussie was offered throughout the session following Tuesday’s dovish Reserve Bank of Australia minutes. RBA Governor Glenn Stevens will testify early this evening in front of the House of Representatives Standing Committee on Economics.
USD /CAD is +20 pips 1.0615 after early action tested, and held, support in the 1.0575 area. Tuesday’s advance comes despite this morning’s strong Canadian manufacturing sales, 1.0% M-M actual Vs. -0.2% M-M expected, and has trade attempting to make another run at 1.0700. Canada’s wholesale sales are due Wednesday.
Latest posts by Paul Ebeling (see all)
- Gold Survey: Participants Turned Bearish - April 19, 2014
- Americans Are Embracing Marijuana, And Fast - April 19, 2014
- US Government To Boost Solar Development - April 19, 2014
- Russia Working Towards Closer Economic Ties With China - April 19, 2014
- UN Official Points To Africa’s Economic Potential - April 19, 2014
Lululemon Athletica Inc.(NASDAQ:LULU) Looks Beyond Yoga Wear Lululemon Athletica Inc. ... read more
USD Trades In Lower 102 Yen Range In Early Tokyo ... read more
Gold Survey: Participants Turned Bearish Gold Survey participants turned Bearish ... read more
$BYCBF, $HSY, The World Loves Chocolate, Prices Up, Demand ... read more