FED’S DALY: POLICY ADJUSTMENTS LIKELY WARRANTED AT SOME POINT

MNI China Daily Summary: Thursday, July 11

MNI BOK WATCH: More Evidence Needed To Cut Rates, Says Rhee

MNI: PBOC Conducts CNY2 Bln Via OMO Thurs; Liquidity Unchanged

CHINA PBOC CONDUCTS CNY2 BILLION VIA 7-DAY REVERSE REPOS THURS

MNI: PBOC Sets Yuan Parity Lower At 7.1339 Thurs; -1.06% Y/Y

US EIA:NAT GAS STORAGE +65 BCF TO 3,199 BCF JUL 05 WK

Core Goods Above-Expected, But Headline Weakest Since Pandemic(2/2)

CPI Miss Driven By Comprehensively Slower Services Inflation (1/2)

RPT-MNI: Canada Sticks To Fiscal Anchors, Spends Chunk Of Windfall

MNI BRIEF: Poilievre Calls QE 'Scam' And Would Limit BOC Remit

© 1982-2024 MNI. All rights reserved.
Terms | Privacy
Log Out
Free Trial

Advances Above $1.2100 as USD Remains Under Pressure Post FOMC

EUR
MNI (London)
  • Risk appetite back in play following last night's FOMC/Powell press conference with the USD under pressure across the board.
  • FOMC statement was in line with expectations, acknowledged improved economic activity and employment, though with a diminished caveat that risks to the economy remain. Powell said 'still not time to start talking about tapering'
  • Volatile reaction to the announcements, rate dipped to $1.2066 before it spiked to $1.2135 as Powell spoke, the rate closing the day at $1.2125.
  • Asia took over the baton of USD sales (markets thinned by the Tokyo holiday), edged EUR/USD to $1.2150 where it stalled.
  • Rate eased to $1.2124 before meeting renewed demand interest which edged it to $1.2136 ahead of the European open.
  • Support $1.2124/20, $1.2105/00 ahead of $1.2090/80, a break to open a deeper move toward $1.2060/45. Resistance $1.2150/55, $1.2167(1.618% swing 1.1990-1.1704) with the top of the 1.0% 10-dma envelope coming through at $1.2184(Feb26 high). Above here to expose $1.2197(76.4% $1.2349-1.1704 - 2021 range)
  • Germany state CPI's released through the morning ahead of pan-Germany CPI at 1200GMT. Spain CPI 0700GMT, Germany Unemployment 0755GMT, ECB M3 0800GMT, EZ Econ Confidence 0900GMT. ECB Guindos speaks at 0730GMT, Holzman 1300GMT.
  • US GDP, Core PCE, Weekly Claims 1230GMT, Pending Home Sales 1400GMT.
  • MNI Techs: EURUSD cleared the bear channel top drawn off the Jan 6 high Weds. The break confirms a resumption of the current uptrend and maintains a recovery towards 1.2184, Feb 26 high and the next key resistance at 1.2243, Feb 25 high. Moving average studies are again in a bull mode and reinforces the bullish theme. Initial support lies at 1.2056, Apr 28 low.
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets
MNI London Bureau | +44 203-586-2231 | john.webb@marketnews.com
BulletMarketsForeign Exchange Bullets

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.