Dollar declines ahead of Fed minutes
City Index April 9, 2014 2:54 PM
<p>The equity markets are again driving FX markets and we see signs of stability in the US markets as the S&P holds the technical support at […]</p>
The equity markets are again driving FX markets and we see signs of stability in the US markets as the S&P holds the technical support at 1836.
Overnight, the Nikkei failed to be inspired from the US equity market as the Nikkei dropped a further 2% – making the weekly change down nearly 5% as the JPY surged back to above 102.00.
The catalyst for this move comes from the BoJ press conference, where Governor Kuroda seemed to signal content with the current Japanese monetary policy and disappointed the JPY bears with a lack of additional stimulus initiatives.
In other news, the AUD continues to rally as home loans data showed mortgage approvals increased to a five month high of 2.3% versus the expected 1.5%.
Data events today consist of the UK trade balance this morning ahead of the FOMC minutes for the March meeting as the market looks for additional hawkish tones.
The Ukrainian crisis will be closely monitored following American accusations that Russia are using special forces to cause unrest in the region and the G20 announced they’ll be discussing the Ukrainian situation at the upcoming meeting.
Supports 1.3775-1.3730-1.3675 | Resistance 1.3825-1.3850-1.3880
Supports 101.70-101.20-100.75 | Resistance 102.15-102.65-103.00
Supports 1.6700-1.6675-1.6620 | Resistance 1.6750-1.6800-1.6825
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