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9 Jan 2014
Session re-cap; US dollar now awaits Non Farm Payrolls tomorrow
FXstreet.com (Guatemala) - The market has been all eye’s on events with a lack of follow through for the greenback.
GBP/USD
The ranges across the G10 currencies remain in tact with cable on the handle of 1.64 still and sterling crosses have been suffering some profit taking. Retail supply as high as 1.6485/00 although Sterling has been supported by corporate demand. The Bank of England has held interest rates at its record-low 0.5 percent. It has also kept its asset purchase facility at GBP375bn. There was no accompanying statement from BoE. GBP/USD currently trades 1.6460 spot.
EUR/USD
EUR/USD had been underpinned by the euro/crosses and took the pair through stops on a spike into 1.3630 until European names began fading the topside. The EUR/USD dropped like a stone through to 1.3550 on Draghi talking tough. EUR/USD is currently heading towards 1.3600.
USD/JPY
USD/JPY had been in focus with the BOJ member Shirai speaking overnight suggesting that the low euro zone inflation rate as a concern. The pair was a buy on dips session early in Europe but has since slipped through the ascending support line. Spot is currently 104.78 with a bearish bias on the short term charts.
AUD/USD
AUD/USD has been very subdued in a 0.8870/95 ranged ascending channel. There was early EUR/AUD demand putting strain on the pair with the cross rallying 1.5305 – 1.5345 settling back to 1.5320 late morning but only to suffer Draghi resulting in a much lower cross benefitting AUD. The pair is currently testing the 1.53 again.
Non Farm Payrolls
All eyes are now set upon on Non Farm Payrolls tomorrow. The dollar is still riding the FOMC and any negative surprises to the downside from the jobs report could result in long dollar liquidation. However, the FOMC is not likely to base a decision on one single report alone and either way, the markets reaction could be less accommodating to the result than previous occasions.
GBP/USD
The ranges across the G10 currencies remain in tact with cable on the handle of 1.64 still and sterling crosses have been suffering some profit taking. Retail supply as high as 1.6485/00 although Sterling has been supported by corporate demand. The Bank of England has held interest rates at its record-low 0.5 percent. It has also kept its asset purchase facility at GBP375bn. There was no accompanying statement from BoE. GBP/USD currently trades 1.6460 spot.
EUR/USD
EUR/USD had been underpinned by the euro/crosses and took the pair through stops on a spike into 1.3630 until European names began fading the topside. The EUR/USD dropped like a stone through to 1.3550 on Draghi talking tough. EUR/USD is currently heading towards 1.3600.
USD/JPY
USD/JPY had been in focus with the BOJ member Shirai speaking overnight suggesting that the low euro zone inflation rate as a concern. The pair was a buy on dips session early in Europe but has since slipped through the ascending support line. Spot is currently 104.78 with a bearish bias on the short term charts.
AUD/USD
AUD/USD has been very subdued in a 0.8870/95 ranged ascending channel. There was early EUR/AUD demand putting strain on the pair with the cross rallying 1.5305 – 1.5345 settling back to 1.5320 late morning but only to suffer Draghi resulting in a much lower cross benefitting AUD. The pair is currently testing the 1.53 again.
Non Farm Payrolls
All eyes are now set upon on Non Farm Payrolls tomorrow. The dollar is still riding the FOMC and any negative surprises to the downside from the jobs report could result in long dollar liquidation. However, the FOMC is not likely to base a decision on one single report alone and either way, the markets reaction could be less accommodating to the result than previous occasions.