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USD Ebbs in Extension of Post-Fed Trend

FOREX
  • Greenback is extending the post-Fed weakness in early Thursday trade, with the USD comfortably the poorest performer in G10 ahead of NY hours. This puts the USD Index at its lowest level since late June, with 92.00 figure seen providing minor support.
  • Haven currencies are following the USD lower, with the main beneficiaries being NOK, AUD and NZD. The upside in NZD/USD is running against the short-term trend indicators (50-dma < 200-dma) and faces first resistance at the late July highs of 0.7010.
  • Regional German CPIs have tended to edge higher, supporting the market consensus that the nationwide reading will accelerate to 3.2% from 2.3% later today.
  • The advance US GDP release for Q2 is also due, with growth seen accelerating to 8.5% from 6.4% on an annualized basis. Pending home sales data could also take some focus given the sharp miss on expectations in the new home sales figure earlier in the week.

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