fx in a patient consolidation mode 335312015
<p>The FX markets are trading with reduced volatility ahead of the FOMC meeting tomorrow despite oil reaching a fresh 9-year low yesterday. The euro has […]</p>
Share this:
The FX markets are trading with reduced volatility ahead of the FOMC meeting tomorrow despite oil reaching a fresh 9-year low yesterday. The euro has traded back above 1.06 this morning with sources suggesting that position adjustment to what technically looks to be an oversold euro provided the catalyst for the early move.
The BoJ kept monetary policy unchanged with a majority voting pattern of 8-1 as monetary stimulus levels remained at 80 trillion JPY. The only change came in the form of the inflation outlook as the BoJ revised the current view to zero from 0.5% despite their expectations that the longer-term view is rising. Going forward, the BoJ is likely to expand the monetary policy at the October 30th meeting, when it updates its outlook and the effects of fiscal stimulus are likely to fade.
The RBA minutes caused an initial 25 point dip to the Australian dollar as the central bank again reiterated its stance on their currency with ‘AUD above fundamental value given commodity falls’ as the statement kept to the ‘wait and see’ policy as members ‘saw advantages in receiving more data to indicate whether or not the economy was on the previously forecast path’ adding ‘case to ease policy further might emerge’.
We receive the latest HICP reading from the EU this morning along with the ZEW survey, although the significance of this data is less important as we await the effect of QE. US housing data is released this afternoon ahead of the FOMC tomorrow where all eyes will be on the ‘patient’ phrase and if it is removed from the forward guidance statement.
EUR/USD
Supports 1.0435-1.0340-1.0285 | Resistance 1.0665-1.0825-1.0990
USD/JPY
Supports 119.50-118.65-116.70 | Resistance 122.45-123.70-124.15
GBP/USD
Supports 1.4550-1.4350-1.4250 | Resistance 1.5100-1.5250-1.5345
Related tags:
Latest market news
Open an account in minutes
Experience award-winning platforms with fast and secure execution, and enjoy tight spreads from 0.5 pts on FX and 0.3 pts on indices.
Economic calendar
Web Trader platform
Our sophisticated web-based platform is packed with features.
Related articles
This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.
StoneX Financial Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the StoneX group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), StoneX Financial Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact StoneX Financial Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.
In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither StoneX Financial Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.
StoneX Financial Pte. Ltd. is not under any obligation to update this report.
Trading CFDs carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit www.forex.com/en-sg/terms-and-policies for the complete Risk Disclosure Statement.