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Sights Set on the Fed

FOREX

USD/JPY saw a decent move higher as headlines confirmed that the Japanese PM Abe would serve out the full term as leader of the LDP - squeezing speculation that the PM could be forced to resign as soon as this Friday on health grounds. USD/JPY rallied to touch 106.20, with resistance remaining ahead of the 50-dma at 106.54, which has capped prices on a few occasions this week.

AUD and NZD are mildly outperforming, but recent ranges are largely being respected. Both AUD/USD and NZD/USD are eyeing the early August cycle highs for further direction. NOK and CAD are at the other end of the table, with moderating WTI Crude oil largely responsible.

Powell's speech at Jackson Hole will be the highlight of the trading day - his opening remarks cross at 1410BST/0910ET.

Weekly US jobless claims are also due as well as the latest revision to Q2 GDP numbers.

MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com
MNI London Bureau | +44 203-865-3809 | edward.hardy@marketnews.com

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