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The dollar was rangebound ahead of the FOMC in N.Y. on Wednesday. The greenback initially bounced, then eased back after the Fed announcement, where rates were left unchanged, as expected. EUR-USD fell to 1.1629 from near 1.1650 before bouncing to 1.1706. Read more
OVERVIEW FX relatively quiet as the market awaits the FOMC decision. U.S. new home sales rose 610k in June, a similar pace to May that is in line with market forecasts. Australian CPI slowed unexpectedly in the second quarter, dampening rate hike bets. Australia's central bank governor Philip Lowe said he is "very comfortable" with interest rates at record lows. Swiss investor sentiment surged to its highest level since January 2014 in July. New Zealand posted a fourth consecutive trade surplus in June. HIGHLIGHT The UK economy remained in low gear in the second quarter after almost stalling at the start of the year. Read more
Sometimes it's worthwhile to show you something that doesn't pan out, just to show you that I don't cherry-pick data. It has to be worthwhile and reasonably consistent for me to include it in my surveys. Such is the case with corporate federal income tax payments. Read more
The trade-weighed USD index inched upwards, to a three-session high at 94.12 as market participants anticipate the Fed's policy announcement and guidance later today. USD-JPY lifted briefly above 112.00 during the Tokyo session before settling lower, while EUR-USD extended the correction from yesterday's 23-month high at 1.1711, ebbing to a low of 1.1612. Read more
The Aussie dollar took a rap following sub-forecast CPI data out of Australia, which came in at 1.9% y/y in Q2 versus the median forecast for 2.2% y/y, while the underlying rate remained stubbornly below the RBA's target range. AUD-USD is just off its lows, at 0.7884 bid presently, showing a 0.7% decline on the day as the London interbank market take to their seats. Read more
Decent incoming U.S. data supported the dollar in N.Y. on Tuesday, while earnings beats helped Wall Street, resulting in higher Treasury yields, also dollar friendly. EUR-USD topped at 1.1712 before profit taking took the pairing to 1.1646 lows. USD-JPY meanwhile, was supported by risk-on conditions, topping at 111.68. Read more
OVERVIEW German business morale hits a record high in July, with Euro's rise not a concern. U.S. consumer confidence unexpectedly rose in July, just shy of a 17-year high. U.S. house prices rose at a slower than expected pace in April. Market sentiment has improved with global stocks in positive territory and oil prices also higher. HIGHLIGHT German business confidence rose again unexpectedly in July, hitting a third consecutive monthly all-time high. Read more
The dollar trade mostly without direction during the Asian and European AM sessions. USD-JPY lifting to a two-session peak of 111.46 amid a broad-but-modest tick lower in the yen, while EUR-USD narrowly orbited the 1.1650 level, continuing the consolidation after the pair clocked a 23-month high on Friday at 1.1684. Read more
Narrow ranges have been the order of the day so far, with a combo of a dearth of fresh directional cues, summertime thinness, and the looming proximity of the Fed's policy announcement (tomorrow) fostering a noncommittal market. USD-JPY dipped back under 111.00, reflective of a broad though moderate bid in the yen, which has been seen since just after the Tokyo fix. Read more
