Slight dollar bid skew ahead of consumer confidence

<p>A dull start to the FX markets this week following last week’s taper debacle. A bearish Fed Chairman, along with FOMC members Lockhart, Fisher and […]</p>

A dull start to the FX markets this week following last week’s taper debacle. A bearish Fed Chairman, along with FOMC members Lockhart, Fisher and Dudley are not deviating far from the Fed chair’s script that the taper is totally data dependant.

The highlight today will be the release of US consumer confidence this afternoon at 3pm but the market is already focusing on next Friday’s US jobs report for the next leg of the dollar, although I believe that the quarter end rebalancing should not be ignored. Japanese exporters are normally extremely active this month, along with the EU farmers subsidiary payment that is due to the UK thanks to the late legend Baroness Thatcher.

The overnight session highlight came from New Zealand where Fonterra raised their milk payment forecast to NZD8.30 per KG which saw the bird rally 15 points.

As I mentioned above the US consumer confidence will be today’s highlight at 3pm along with the German IFO survey due for release at 9am this morning. There is second tier data from the UK at 9.30am in the form of mortgage applications, with two more Fed members due to speak this afternoon/evening. Pianalto and George are looking to no doubt remind us that tapering is data dependant.

 


EUR/USD

Supports 1.3475-1.3450-1.3380 | Resistance 1.3580-1.3630-1.3715


USD/JPY

Supports 98.45-97.80-97.40 | Resistance 99.45-99.80-100.00


GBP/USD

Supports 1.5980-1.5925-1.5885  | Resistance 1.6080-1.6125-1.6165

Join our live webinars for the latest analysis and trading ideas. Register now

GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.