JPY in the spotlight
City Index September 26, 2013 2:41 PM
<p>The proud pound and the euro trade back towards the FOMC no taper levels with the single currency holding support at 1.3450, which was the […]</p>
The proud pound and the euro trade back towards the FOMC no taper levels with the single currency holding support at 1.3450, which was the gap level from last weeks’ no taper announcement. So, we now look to target the 19th high of 1.3570 which – if broken - could target the 2013 high of 1.3710/15.
The JPY took centre stage in the FX space overnight as the Nikkei out performed up 1.5%, causing the JPY to decline. The move has been attributed to two headlines: the first on Kyodo ‘Japanese government to urgently consider reducing the corporate tax rate’, and the second being that Takatoshi Ito the chairman of the public pension funds reform council will hold a press conference at 6pm Tokyo time (10am London) with the speculation that he will announce a move into riskier assets, namely foreign securities.
I’m expecting another day searching for progress on the US debt ceiling debacle, with overnight articles bringing the treasury bankruptcy date even closer. The weekly US jobless claims data will hopefully be released today without the IT issues that have distorted the data for the past two weeks. We also get the latest revisions of GDP data from the UK and the US, along with the latest pending home sales number from the US.
Supports 1.3490-1.3450-1.3380 | Resistance 1.3540-1.3570-1.3620
Supports 98.20-97.80-97.40 | Resistance 99.30-99.65-100.00
Supports 1.6060-1.6030-1.5955 | Resistance 1.6135-1.6170-1.6250
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