Dovish Fed puts pressure on USD; BoE rate announcement due today

<p>Fed minutes last night kept USD under pressure with its dovish tone, with the main talking point being that projections for an interest rate rise […]</p>

Fed minutes last night kept USD under pressure with its dovish tone, with the main talking point being that projections for an interest rate rise were overstated. This gave the euro and GBP a lift in late evening trading.  Today unemployment claims are due, with a drop expected from the last reading to 314k.

In Asia, Chinese data surprised to the upside with a good trade balance figures. Exports have fallen for a second straight month in March, giving a lift to Asia FX currencies like the Aussie, kiwi and yen. Helping the Aussie was the unexpected fall in unemployment rate, down to 5.8%. This helped AUD keep hold of its gains coming into the European trading session.

The pound will be in focus today, with the official bank rate expected to be at 0.5% as it currently is and with no change to asset purchases of 375 billion. No shocks are expected from the BoE but none the less there is always an important and anxious wait to hear what will happen.

The ECB will announce its monthly bulletin today, giving a view on why rates were not cut due to low inflation, so discussions on what may be in store for a next meeting could see a reaction on the euro.

 

 

EUR/USD

Supports 1.3815 1.3780 1.3750 | Resistance 1.3880 1.3915 1.3965

 

USD/JPY

Supports 101.70 101.20 100.75 | Resistance 102.15 102.65 103.00

 



GBP/USD

Supports 1.6750 1.6730 1.6670 | Resistance 1.6825 1.6860 1.6900

 

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