Currencies: USD Trading Flat Ahead Of Fed

Posted by: : Paul EbelingPosted on: December 18, 2013 Currencies: USD Trading Flat Ahead Of Fed

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.

Stay tuned…


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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