Forex today analysis signals news EUR USD GBP JPY 12.20.2013
EURUSD
The U.S. currency rose against most of its 16 major counterparts after the Federal Reserve yesterday said that they would slow down monetary stimulus to $ 75 billion per month of $ 85 billion. The yen rose against the dollar as the Bank of Japan's policy makers begin a two-day meeting. The index measures the volatility of the currency slid for a fourth day after the Fed stressed its commitment to keep borrowing costs at a low level for a long time.
Dollar at 18:34 pm moving in the range of $ 1.3680 per euro after rising to $ 1.3650, the strongest level since December 6. The dollar was still down by 3.6 % this year. The U.S. currency weakened by 0.3 % to 104.10 per yen. The yen rose 0.3 % to 142.30 per euro after tergelinciri to 142.90 yesterday, the weakest level since October 2008.
The Fed also reiterated that they guarantee the interest rate hike is still far away from their plans and interest rates will remain at a low level even though the unemployment rate down to below 6.5 %.
Central bank has kept its benchmark interest rate target in a range of zero to 0.25 % since December 2008.
JPY
The greenback soared to a level of 104.37 versus the yen, which is a level not seen since October 2008, as well as daily posted its strongest rally since last 4.5 months. But pairing the European session corrected to a level of 103.86 so far though so some analysts are still optimistic USDJPY can touch the level of 104.70 and 105.00 as the nearest target.
The Fed is expected to continue to reduce the stimulus of $ 10 billion in each of the next FOMC meeting until September 2014, followed by the withdrawal of stimulus wholly of $ 15 billion in October FOMC meeting next year. Quite a contrast with the policy of the U.S. central bank, the Bank of Japan actually diekspektasikan will keep its monetary easing policy aggressively to meet the inflation target of 2 % within 2 years.
From a technical point of view for EUR, 1.3650 is still holding up although a break would lead, initially to Fridays spike low at 1.3617, where the next Fibo support also lies (1.3612: 38.2% of 1.3294/1.3810). Below 1.3600 would suggest deeper losses, initially towards 1.3575 and more likely onto the 50% pivot of 1.3294/1.3811 at 1.3550. The dailies and the 4 hour charts are both hinting in this direction, although I suspect it will be slow to unwind and rather choppy in the process.
On the topside, minor resistance arrives at 1.3685 with stronger sellers likely to be found at around 1.3710, which if we see it would It suspected present us with a sell opportunity.
For today use 1.3615/1.3710 as a guide.
GBP
Support should be seen at 1.6335 (23.6% of 1.5853/1.6484), which I suspect should hold today, but below 1.6300 would see another fall to 1.6260 and possibly 1.6215. The 4 hour charts are positive and if anything we could be in for another test of 1.6400. I would be doubtful today of heading too much higher but it is possible and the BOE quarterly bulletin is likely to be mildly positive, so above this would see a run towards 1.6430 and possibly to 1.6465. I don’t think yesterdays spike to 1.6485 will come into play though. If anything is likely to push it to the topside today, it could be the announcement of the final UK GDP today, which should be a reasonable reading (exp +0.8%QQ, +1.5%YY) following the recently improved UK date releases.
The greenback soared to a level of 104.37 versus the yen, which is a level not seen since October 2008, as well as daily posted its strongest rally since last 4.5 months. But pairing the European session corrected to a level of 103.86 so far though so some analysts are still optimistic USDJPY can touch the level of 104.70 and 105.00 as the nearest target.
The Fed is expected to continue to reduce the stimulus of $ 10 billion in each of the next FOMC meeting until September 2014, followed by the withdrawal of stimulus wholly of $ 15 billion in October FOMC meeting next year. Quite a contrast with the policy of the U.S. central bank, the Bank of Japan actually diekspektasikan will keep its monetary easing policy aggressively to meet the inflation target of 2 % within 2 years.
From a technical point of view for EUR, 1.3650 is still holding up although a break would lead, initially to Fridays spike low at 1.3617, where the next Fibo support also lies (1.3612: 38.2% of 1.3294/1.3810). Below 1.3600 would suggest deeper losses, initially towards 1.3575 and more likely onto the 50% pivot of 1.3294/1.3811 at 1.3550. The dailies and the 4 hour charts are both hinting in this direction, although I suspect it will be slow to unwind and rather choppy in the process.
On the topside, minor resistance arrives at 1.3685 with stronger sellers likely to be found at around 1.3710, which if we see it would It suspected present us with a sell opportunity.
For today use 1.3615/1.3710 as a guide.
GBP
Support should be seen at 1.6335 (23.6% of 1.5853/1.6484), which I suspect should hold today, but below 1.6300 would see another fall to 1.6260 and possibly 1.6215. The 4 hour charts are positive and if anything we could be in for another test of 1.6400. I would be doubtful today of heading too much higher but it is possible and the BOE quarterly bulletin is likely to be mildly positive, so above this would see a run towards 1.6430 and possibly to 1.6465. I don’t think yesterdays spike to 1.6485 will come into play though. If anything is likely to push it to the topside today, it could be the announcement of the final UK GDP today, which should be a reasonable reading (exp +0.8%QQ, +1.5%YY) following the recently improved UK date releases.
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