News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Real Time News
  • S&P 500, Nasdaq Rally After the Fed; 10 Year Yield to Two-Month-Highs https://www.dailyfx.com/forex/market_alert/2021/09/23/SPX-SPY-ES-SP500-Nasdaq-NQ-QQQ-Rally-After-the-Fed-10-Year-Yield-2-Month-High.html https://t.co/peftVleO0y
  • #Bitcoin Outlook: $BTCUSD Bounce From 40K, Fake-out or Shake-out? - https://t.co/ixsRMKgCom https://t.co/KDQv4wgfot
  • While JPY gets clobbered, CHF decides to turn a blind eye to yields $CHF https://t.co/MViWZiiPZ7
  • The surprise 100 basis point cut from the Turkish central bank (to 18%) generated the expected pressure for $USDTRY. That said, I don't think it was the market that decided the momentum should die out at 8.8000 again... https://t.co/4jmOPnzzK9
  • surprised that $NQ is holding up so well with what rates are doing. 10 year yield at a 2 month high, $Nasdaq still holding resistance at prior support https://t.co/UBWBxY2nFC
  • The S&P 500 has recovered all the ground it lost at the start of the week and the Dollar has slumped post FOMC and PMIs. DailyFX's @JohnKicklighter gives a brief overview of the market for Thursday! https://t.co/jihKB44ELn
  • https://t.co/lbNvVbQq4n
  • The future taper isn't enough to urge the Dollar to a critical bullish break. In turn, $EURUSD has reversed shy of of August's trough and keeps in play an inverse head-and-shoulders pattern with a neckline at 1.19 https://t.co/EgUtX6Pmvy
  • USD/CAD testing short-term moving average support. Traders have cut their long exposure over the week. Get your market update from @nickcawley1 here:https://t.co/iEL5cbFnHs https://t.co/6kLkUFkFvU
  • In the West, that qualifies as a default action. Let's see how it is treated in the world's second largest economy https://t.co/PKWy7SE8Dt
US Dollar Eyes FOMC Minutes for Next Move. Where To for EUR/USD?

US Dollar Eyes FOMC Minutes for Next Move. Where To for EUR/USD?

Daniel McCarthy,

US DOLLAR, FOMC MINUTES, RBNZ, NZD/USD, EUR/USD – Talking Points

  • US Dollarheld ground in APAC trade, set to test key levels ahead of FOMC minutes
  • Asia Pacific equity markets found some support despite a soft Wall Street lead
  • RBNZ decision provided NZD volatility, market looking at EUR/USD support levels

The US Dollar held firm in Asia after strengthening in the North American trading session against the major currencies, even as July’s retail sales data showed a steeper downtick than expected. Traders may have interpreted the outsized 1.1 percent drop through the lens offered by recent University of Michigan consumer confidence data. It showed a loss of confidence in the face of steep inflation. That may have been seen as beckoning the central bank to act.

Nevertheless, Fed Chair Powell gave markets very little at a town hall meeting about policy adjustment and the S&P 500 finished the session slightly weaker. Despite this lead, Asian equities found some support, with Hong Kong’s Hang Seng Index and Japan’s Nikkei 225 leading the way.

The New Zealand Dollar spiked down as the RBNZ unexpectedly held the cash rate at 0.25%, whereas analysts expected a 25bps rise to 0.50%. It later recovered to levels seen before the decision after RBNZ Governor Adrian Orr expressed optimism about the outlook for the New Zealand economy. While he acknowledged elevated health risks and some export sectors struggling, he was very positive on overall growth and employment prospects. He further re-iterated a reduction in stimulus must be done at some stage.

US housing starts are out today ahead of minutes from July’s FOMC meeting. Markets will be keen for any clues on tapering plans despite the time lag from the meeting itself. Powell referenced the impact of Covid at the town hall meeting and analysts will be looking closely at the wording around this risk.

If the US Dollar strengthens significantly against the Euro, it may bring on larger moves and create volatility in other currency pairs as well. For example, the Australian Dollar has also made a new low for the year against the Greenback and could still be susceptible to further bearish influence from moves in EUR/USD.

EUR/USD Technical Analysis

EUR/USD is trading very close to the year low of 1.1700 and a conclusive break below that level may see a test of the low at 1.1600 from last year. If it were to move below 1.1600, it may open a larger move lower in EUR/USD and mark an overall USD strengthening across the markets.

EUR/USD – Daily Chart

US Dollar Eyes FOMC Minutes for Next Move. Where To for EUR/USD?

Chart Created in TradingView

--- Written by Daniel McCarthy, Strategist for DailyFX.com

To contact Daniel, use the comments section below or @DanMcCarthyFX on Twitter

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES