The forex markets are generally range bound as traders await FOMC minutes. The main focus will be on discussions on the timing of tapering, which wasn't clearly indicated in the statement and economic projections. Dollar's rise appears to be losing steam as global sentiments stabilized today. DOW futures point to a recovery while S&P 500 and NASDAQ might be ready to resume record runs. Commodity currencies are currently the stronger for today while Yen is the weakest. Technically, we'd reiterate again that Dollar was held below near term levels against most major currencies, despite yesterday's rally attempt. The levels include 1.1806 support in EUR/USD, 1.3730 support in GBP/USD, 0.7443 support in AUD/USD, 0.9275 resistance in USD/CHF. Return of risk appetite today could push the greenback further away from these levels. Meanwhile, extended weakness in yields could give Yen some support. Happening together, such developments could send USD/JPY through 110.41 short term support decisively. In Europe, at the time of writing, FTSE is up 0.40%. DAX is up 0.95%. CAC is up 0.03%. Germany 10-year yield is down -0.027 at -0.293. Earlier in Asia, Nikkei dropped -0.96%. Hong Kong HSI dropped -0.40%. China Shanghai SSE rose 0.66%. Singapore Strait Times dropped -1.54%. Japan 10-year JGB yield dropped -0.0097 to 0.037. |
