 Trading in the forex markets is rather subdued today, as FOMC policy decision, dot plot and economic projections are awaited. The markets could come back to live if there are some hawkish twists in Fed's projections. For now, Sterling is staying in selloff mode, even though momentum diminished a bit. Yen is also soft today, but it's just digesting some of this week's gains. On the other hand, Aussie is recovering mildly, together with Kiwi, as risk sentiment stabilizes. Technically, EUR/GBP is now approaching 0.8126 resistance and break will resume the rise from 0.8448 to 0.8668 key structural resistance. GBP/JPY is pressing 149.03 key support zone and sustained break would resume the fall from 156.05 towards 143.78 fibonacci level. GBP/USD is also heading to 1.3601 support and break there would solidify downside momentum through 1.3570 support towards 1.3482 medium term support. The moves could come before BoE rate decision tomorrow, if FOMC triggers some volatility in the markets. In Europe, at the time of writing, FTSE is trading up 1.38%. DAX is up 0.72%. CAC is up 1.22%. Germany 10-year yield is up -0.0085 at -0.321. Earlier in Asia, Nikkei dropped -0.67%. China Shanghai SSE rose 0.40%. Singapore Strait Times dropped -0.49%. Japan 10-year JGB yield dropped -0.0038 to 0.036. Hong Kong was on holiday. |
