US Dollar At 10-Month Highs

Posted by: : Paul EbelingPosted on: July 31, 2014 US Dollar At 10-Month Highs

US Dollar At 10-Month Highs

The US Dollar Index (.DXY) moved to highs near 81.50 after the Fed announced another $10-B taper to its asset purchase program.  Wed esday’s advance has the Buck at marks last seen in September 2013.

Two otable excerpts from the FOMC statement: “a range of labor market indicators suggests that there remains significant underutilization of labor resources” and that “inflation has moved somewhat closer to the Committee’s longer-run objective.”

  • EUR/USD is -25 pips at 1.3385 trade fell to its lowest levels in about 9 months. Selling in July has wiped about 300 pips, while pushing trade below Key support at 1.3500. Eurozone data: CPI Flash Estimate, the unemployment rate accompany French consumer spending and German retail sales and unemployment change.
  • GBP/USD is -30 pips at 1.6915 sellers in control for a 9th session in 10. Wednesday’s weakness has the pair at  support in the 1.6900 region as action dips to mid- June marke. The 100-Day MA provides help near 1.6855. Britain’s Nationwide Home Price Index is set for Thursday.
  • USD/CHF is +20 pips at .9090 action seeing with its best marks of Y 2014. An early KOF Economic Barometer miss has aided by Bulls, but trade remains dictated by the EUR thanks to the Swiss National Bank’s EUR/CHF 1.20 floor.
  • USD/JPY is +65 pips at 102.75 action looks at a 9th straight gainer. The ndustrial production miss in Japan got the buying pumped with trade probing 3.5 month highs above 103.00 after the Fed rate decision. Japanese data limited to average cash earnings.
  • AUD/USD is -45 pips at .9335 action sees lowest close since early June. Wednesday’s weakness broke support at  .9350 before testing the 100-Day MA at .9315. Australia’s building approvals and import prices will cross the wire tonight.
  • USD/CAD is +40 pips at 1.0890 trade rallied to a 1.5 month high. A hotter than expected Raw Materials Price Index (1.1% M-M actual Vs 0.6% M-M expected) number did not deter the Bulls, action probes resistance defended by the 100-Day MA. Canada’s GDP is scheduled for Thursday.

US Treasuries

Bond Yields Surge as GDP Prints 4.0% and the Fed Tapers. Treasuries were hit hard, pressured by the stronger than expected Q-2 GDP-Adv. (4.0% actual Vs  3.2% expected) report

Other data saw the MBA Mortgage Index dip -2.2% and ADP Employment Change print 218-K Vs 215-K expected. Maturities saw small losses into this morning’s release before the better than expected growth pressed the complex to its lows.

Stay tuned…

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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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