FX Handover: Sentiment Remains Buoyed Ahead Of FOMC
Matt Simpson June 19, 2019 12:05 AM
- Narrow ranges overall for FX markets, all covered markets remaining well within typical daily ranges ahead of today’s highly anticipated FOMC meeting. GBP and EUR leading the pack and CHF and NZD lagging. DXY sits just below 2-week highs, gold is just below $1350 (previous YTD highs) and WTI has found resistance near the June high.
- Equity markets across the APAC region took the positive lead from Wall Street, after trade thawed on news of a Trump-Xi meeting. The Hang Seng gapped to a 1-month high and more than off-set losses caused by protests.
- Japanese exports contracted -7.8% YoY, for a 6th consecutive month and export volumes declined for a 7th straight month. However, exports to the US were higher, yet were down on the month to China. Overall, analysts see this trend as a concern to BoJ who could consider further easing to counter its negative impact on the economy.
- Japan’s Asakawa: Japan won’t take sides on US-China trade friction. It’s widely understood among G7 and G20 that BOJ’s easy policy us aimed at beating deflation, not currency manipulation. More substantial trade topics like WTO reforms will likely be debated at G20.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.