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20 Sep 2013
European open: Few surprises on the horizon. Consolidation following Fed excitement earlier in the week
FXstreet.com (London) - Heading into the European session, today is a light day for macro data announcements.
China, Hong Kong, Korea and Taiwan markets are closed today for the mid-autumn/ harvest moon holidays.
European focus will be on the run up to the German general elections happening this weekend, and whether Merkel can maintain her current coalition partners or be forced into another Grand Alliance.
This afternoon there are Fed speeches from Bullard and Kocherlakota, but expect both to be dovish, very much in line with Bernanke’s language following the FOMC meeting earlier this week.
Yesterday, the dollar made up for some of the heavy selling on the Fed’s decision to hold monthly asset purchases at USD85bn. US jobless data beat consensus, but for the second week in a row, the data was rendered useless after Nevada and California failed to report due to ongoing computer system upgrades. Home sales and Philadelphia manufacturing numbers beat consensus expectations.
A topping-out of the “notaper” rally happened in European and US equity markets, with the S&P falling off its exuberant highs, down to 1,720.20
EUR/USD shed some gains from its seven-month highs of USD1.3569 to USD1.3530 – any big moves are unlikely to occur today on light trading.
Cable slid from its Fed highs, on unexpectedly weak UK retail sales, GBP/USD hit an intrad-day low of USD1.6080.
NZD/USD continued its gains on strengthening GDP and contrasting central banks – the Reserve Bank of New Zealand is probably the most hawkish of the majors. It hit a four-month high of USD0.8436 before retracing to USD0.8392.
The Indian Rupee started today with a sharp dive against the dollar following the announcement by the Reserve Bank of India that it would be raising the repo rate by 25 bps to 7.50 percent. weakening USD/INR to INR62.4850.
China, Hong Kong, Korea and Taiwan markets are closed today for the mid-autumn/ harvest moon holidays.
European focus will be on the run up to the German general elections happening this weekend, and whether Merkel can maintain her current coalition partners or be forced into another Grand Alliance.
This afternoon there are Fed speeches from Bullard and Kocherlakota, but expect both to be dovish, very much in line with Bernanke’s language following the FOMC meeting earlier this week.
Yesterday, the dollar made up for some of the heavy selling on the Fed’s decision to hold monthly asset purchases at USD85bn. US jobless data beat consensus, but for the second week in a row, the data was rendered useless after Nevada and California failed to report due to ongoing computer system upgrades. Home sales and Philadelphia manufacturing numbers beat consensus expectations.
A topping-out of the “notaper” rally happened in European and US equity markets, with the S&P falling off its exuberant highs, down to 1,720.20
EUR/USD shed some gains from its seven-month highs of USD1.3569 to USD1.3530 – any big moves are unlikely to occur today on light trading.
Cable slid from its Fed highs, on unexpectedly weak UK retail sales, GBP/USD hit an intrad-day low of USD1.6080.
NZD/USD continued its gains on strengthening GDP and contrasting central banks – the Reserve Bank of New Zealand is probably the most hawkish of the majors. It hit a four-month high of USD0.8436 before retracing to USD0.8392.
The Indian Rupee started today with a sharp dive against the dollar following the announcement by the Reserve Bank of India that it would be raising the repo rate by 25 bps to 7.50 percent. weakening USD/INR to INR62.4850.