Share This Story
Forex Market Update Quiet Asian session ahead of today's FOMC statement!
More downside in USD yesterday, despite lack of data, some position squaring was expected but instead USD/Majors continued lower. Still more talks in Asia of a possible BoJ rate hike in June
MAJOR HEADLINES â€“ PREVIOUS SESSION
â€¢ US wholesale inventories March, out at 0.2% vs. 0.5% expected.
â€¢ US ABC consumer confidence May 8, out at -16 vs. a prior reading of -13.
â€¢ Japan's official reserve assests April, out at $860.2B vs. $852.0B expected.
â€¢ New Zealand's food prices ( MoM) April, out at -0.80% vs. 1.10% expected.
â€¢ Japan's Ten-year JGB marks 1.975% (+0.025 on day). Front-end euroyen futures sold off 5-6 ticks, Sept 2007 off 9 ticks. Yen interest rate market calls for June BoJ rate hike grows.
â€¢ Rumors in the market that China would boost their gold reserves. Gold broke the $700 mark yesterday.
â€¢ There was talks in the market of Iran would raise EUR rerserves.
THEMES TO WATCH â€“ UPCOMING SESSION
All eyes on FOMC tonight, with an expected rate hike of 25bps. But the focus will be on the following statement released. The market will look for confirmation on a possible rate hike pause for now which will likely reinforce the USD bear trend. The key target for the upside in EURUSD is 1.2890 where the market will look for retracement. A dovish statement from the Fed could send EURUSD on another rally that we have gotten so used too, the last few weeks, but we still look for 1.2890 to be a good reversal point on a short term basis.
Note: the support/resistance levels used in the matrixâ€™s of this document are levels derived from yesterday high, low and close. Reference in the text to other support/resistance levels will occur.
Saxo Bank A/S shall not be responsible for any loss arising from any investment based on any recommendation, forecast or other information herein contained. The contents of this publication should not be construed as an express or implied promise, guarantee or implication by Saxo Bank that clients will profit from the strategies herein or that losses in connection therewith can or will be limited. Trades in accordance with the recommendations in an analysis, especially leveraged investments such as foreign exchange trading and investment in derivatives, can be very speculative and may result in losses as well as profits, in particular if the conditions mentioned in the analysis do not occur as anticipated.
Please read our full Analysis Disclosure & Disclaimer at www.saxobank.com/analysis/disclaimer.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."