Talking Points:
- Yen drops in otherwise quiet trade as Japanese stocks advance
- US Dollar to rise if upbeat PCE data boosts Fed rate hike bets
- Australian, NZ Dollars may underperform amid risk aversion
The Japanese Yen underperformed in otherwise quiet overnight trade. The played out as Japan’s Nikkei 225 stock index traded higher, undermining demand for the anti-risk currency. Shares rose to the highest level in over a week in a move the newswires attributed to expectations that Sharp Corp and Foxconn are set to finalize a takeover deal after prolonged delays.
Looking ahead, February’s US PCE data is in focus. The Fed’s favored inflation gauge is expected to show the pace of price growth accelerated to 1.8 percent year-on-year, the highest since October 2012. A firm outcome may boost FOMC rate hike expectations, offering a lift to the US Dollar. The prospect of a more aggressive tightening cycle may undermine risk appetite, putting particularly strong selling pressure on the sentiment-linked Australian and New Zealand Dollars.
Are FXCM traders buying or selling the US Dollar against its top counterparts? Find out here !
Asia Session
| GMT | CCY | EVENT | ACT | EXP | PREV |
|---|---|---|---|---|---|
| No Data |
European Session
| GMT | CCY | EVENT | EXP | PREV | IMPACT |
|---|---|---|---|---|---|
| No Data |
Critical Levels
| CCY | Supp 3 | Supp 2 | Supp 1 | Pivot Point | Res 1 | Res 2 | Res 3 |
|---|---|---|---|---|---|---|---|
| EUR/USD | 1.1114 | 1.1141 | 1.1154 | 1.1168 | 1.1181 | 1.1195 | 1.1222 |
| GBP/USD | 1.4036 | 1.4085 | 1.4108 | 1.4134 | 1.4157 | 1.4183 | 1.4232 |
--- Written by Ilya Spivak, Currency Strategist for DailyFX.com
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