Fed Will Wait-and-See, China PMI on Deck
The FOMC minutes summed up Bernanke's testimony; more progress is needed in the economy before QE is slowed. The US dollar was the best performer Wednesday while commodity currencies sank. Data from China is in the spotlight with the HSBC China PMI. 2 new EURUSD & 2 new EURJPY have been issued after 4 trades hit all targets, including both EURUSD longs, while EURGBP were stopped out. Access to the latest trades is seen in the latest Premium Insights.
Latest Premium Update: Cautiously Retaining USD Longs
2 new EURUSD & 2 new EURJPY have been issued after 4 trades hot all targets, including both EURUSD longs.
USDJPY did not quite make it to our 130.80 final target teherfore remains in progress. The swing of the rhetorical pendulum at the Fed (from possibility of tapering purchases this year to stating not enough strength to taper purchases) shall likely continue throughout the year without any change in the $85 bn in monthly purchases. Find out what it means for our Premium Trades.
The Fed's repetitive references to tapering asset purchases and increasing them are the latest rhetorical tool in guiding market sentiment. As the economy cools off, the doves at the Fed are on a mission to restore a more symmetric rhetoric, following a hawkish narrative prevailing in the first 3 months of the year. Only this time, the yen's occasional gains during rare risk aversion become an opportunity to ... continue here...
Read More...A top Fed official shot down near-term tapering speculation ahead of Bernanke's testimony. The euro was the top performer while the pound lagged after soft UK inflation data. The Bank of Japan decision in is the major event on the calendar. GBP traders await the release of Wednesday's retail sales, followed by Thursday's release of the revised UK Q1 GDP, which may produce a positive combination for the pair and possibly cap EURGBP. Both of last night's EURUSD are in progress as is GBPUSD, both USDCAD, 1 CADJPY, 2 EURGBP and 1 silver, all seen in the latest Premium Insights.
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