Fed mouthpiece adds to dollar slide
City Index July 26, 2013 2:36 PM
<p>The US dollar continues its slide this week following an article in the WSJ from Fed watcher Jon Hilsenrath on next week’s FOMC meeting suggesting […]</p>
The US dollar continues its slide this week following an article in the WSJ from Fed watcher Jon Hilsenrath on next week’s FOMC meeting suggesting that the Fed may change its forward guidance message by amending the employment rate goal whilst adding an inflation threshold.
The dollar’s woes were compounded as the debate continues on Bernanke’s replacement with FT highlighting front runner Larry Summers’ critical remarks on the effectiveness of QE signalling that super dove Janet Yellen may be the choice that the President will opt for if the recovery in the US economy remains fragile.
In other news JPY has strengthened as the Nikkei closed down 3% following CPI data coming in a tenth higher than expected at 0.2%. USD/JPY traded trading below 99.00 for the first time this week.
The data calendar is bare today, with the only highlight being the University of Michigan survey this afternoon as the market will start to focus on next week’s central bank meetings and the US jobs report.
Supports 1.3250-1.3175-1.3140 | Resistance 1.3305-1.3340-1.3400
Supports 98.30-97.50-96.85 | Resistance 99.40-100.45-100.90
Supports 1.5340-1.5285-1.5225 | Resistance 1.5420-1.5500-1.5565
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