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FOREX: Tight Ranges Prevail Ahead Of Key Event Risks

FOREX

G10 FX trends have been reasonably steady in the first part of Tuesday trade. There is a modest bias towards a slightly firmer USD, but gains are very modest for the most part. The BBDXY USD index was last 1222.9, slightly up on end NY levels on Monday. 

  • USD/JPY had an early spike higher, the pair getting to 141.23 but quickly dipped back below the figure level. Lows were at 140.32 and we last tracked around 140.70/75, slightly weaker in yen terms for the session.
  • News flow as the market awaits key event risks later in the week, with the Fed the main focus point, but we also have the BoJ meeting outcome.
  • US equity futures sit down a touch, while regional equity markets are mixed (Japan down, but Hong Kong higher). China markets remain closed today.
  • In the US Tsys space we have seen yields move a touch higher, but gains are less than 1bps at this stage, with outright levels close to recent lows. US data later on, particularly the retail sales print, may help firm expectations around the Fed outcome, although central banks tend to focus on trends rather than one data point.
  • AUD and NZD sit down a touch. AUD/USD last near 0.6740/45, while NZD/USD is off around 0.20% to 0.6190, but there has been little movement in these pairs outside of some earlier softness.
  • Looking ahead, the ECB’s Buch, McCaul and Elderson appear.  Later the Fed’s Logan gives opening remarks but is unlikely to speak on policy this close to an FOMC meeting. US August retail sales, IP and September NY Fed services print as well as August Canadian CPI. 
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G10 FX trends have been reasonably steady in the first part of Tuesday trade. There is a modest bias towards a slightly firmer USD, but gains are very modest for the most part. The BBDXY USD index was last 1222.9, slightly up on end NY levels on Monday. 

  • USD/JPY had an early spike higher, the pair getting to 141.23 but quickly dipped back below the figure level. Lows were at 140.32 and we last tracked around 140.70/75, slightly weaker in yen terms for the session.
  • News flow as the market awaits key event risks later in the week, with the Fed the main focus point, but we also have the BoJ meeting outcome.
  • US equity futures sit down a touch, while regional equity markets are mixed (Japan down, but Hong Kong higher). China markets remain closed today.
  • In the US Tsys space we have seen yields move a touch higher, but gains are less than 1bps at this stage, with outright levels close to recent lows. US data later on, particularly the retail sales print, may help firm expectations around the Fed outcome, although central banks tend to focus on trends rather than one data point.
  • AUD and NZD sit down a touch. AUD/USD last near 0.6740/45, while NZD/USD is off around 0.20% to 0.6190, but there has been little movement in these pairs outside of some earlier softness.
  • Looking ahead, the ECB’s Buch, McCaul and Elderson appear.  Later the Fed’s Logan gives opening remarks but is unlikely to speak on policy this close to an FOMC meeting. US August retail sales, IP and September NY Fed services print as well as August Canadian CPI.