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FOREX: Yen Outperforming, US$ Slightly Weaker Ahead Of Fed

FOREX
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The US dollar is slightly weaker today ahead of the FOMC decision later with the BBDXY index down 0.1% with most G10 currencies stronger against the greenback. The yen is outperforming and making up some of Tuesday’s losses as the Fed is widely expected to cut rates, while the BoJ’s next move is likely to be a hike, even if it isn’t this Friday. 

  • USDJPY is down 0.7% to 141.37 with key support at 139.58. It reached a low of 141.23 earlier.
  • After reaching a high of 0.6773 earlier, AUDUSD has given up those gains to be down 0.1% on the day at 0.6751, as softer commodity prices, especially iron ore, and mixed regional equities weigh. AUDJPY is down 0.8% to 95.42, close to the intraday low.
  • NZDUSD is up 0.2% to 0.6196 but off the intraday high of 0.6207. AUDNZD is 0.2% lower at 1.0898 where 1.09 seems to be providing some support.
  • European currencies are little changed with EURUSD at 1.1122 and GBPUSD 1.3159 but USDCHF is down 0.2% to 0.8453.
  • Bloomberg consensus is forecasting a 25bp FOMC cut (see MNI Fed analyst outlook and MNI Fed Preview). There is significant speculation that the first move will be 50bp with the market pricing in 1.5 25bp moves.
  • There are also US August housing starts/permits, final euro area August CPI and UK August CPI/PPI. The ECB’s McCaul and Buch speak.
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The US dollar is slightly weaker today ahead of the FOMC decision later with the BBDXY index down 0.1% with most G10 currencies stronger against the greenback. The yen is outperforming and making up some of Tuesday’s losses as the Fed is widely expected to cut rates, while the BoJ’s next move is likely to be a hike, even if it isn’t this Friday. 

  • USDJPY is down 0.7% to 141.37 with key support at 139.58. It reached a low of 141.23 earlier.
  • After reaching a high of 0.6773 earlier, AUDUSD has given up those gains to be down 0.1% on the day at 0.6751, as softer commodity prices, especially iron ore, and mixed regional equities weigh. AUDJPY is down 0.8% to 95.42, close to the intraday low.
  • NZDUSD is up 0.2% to 0.6196 but off the intraday high of 0.6207. AUDNZD is 0.2% lower at 1.0898 where 1.09 seems to be providing some support.
  • European currencies are little changed with EURUSD at 1.1122 and GBPUSD 1.3159 but USDCHF is down 0.2% to 0.8453.
  • Bloomberg consensus is forecasting a 25bp FOMC cut (see MNI Fed analyst outlook and MNI Fed Preview). There is significant speculation that the first move will be 50bp with the market pricing in 1.5 25bp moves.
  • There are also US August housing starts/permits, final euro area August CPI and UK August CPI/PPI. The ECB’s McCaul and Buch speak.