The yen has reversed the whole move, with US GDP print the main highlight for today
City Index January 27, 2012 2:00 PM
<p>EUR/USD Range: 1.3077-1.3120 Support: 1.2920 Resistance: 1.3200-10 The euro seems to be in a consolidation mode following the single currency’s boost after the dovish Fed […]</p>
The euro seems to be in a consolidation mode following the single currency’s boost after the dovish Fed announcement. The market seems to be torn between the ultra loose policy the Fed has developed and the ongoing Greek risk to Europe, especially with the upcoming EU summit and Greek debt talks likely to resume today. Although I doubt an agreement will be in place by the of business today. For me the market is still short and as they say the trend is your friend so I’ll be looking to buy dips as long as we hold above 1.2985 (pre fed level).
The yen has reversed practically the entire move following the dismal Japanese data released on Tuesday. The US yield curve has dominated the pair since the ultra dovish FOMC and with month end fixing from Japanese exporters triggering stops below the 200-day moving average at 77.30 overnight, the market now seems to be a lot cleaner with regards to positioning. Today we see the release of Q4 US GDP which gives us another chance to gauge the US economy with the street looking for a reading of 3%.
No UK data again today so one can expect the pound’s fortunes to be dominated by other markets. For me the cross sterling markets are dominating proceedings. Technically EUR/GBP failed to close above 0.8385 again, but I think this is just a matter of time as we approach the usual month end demand. The yen’s strength dominated the Asian session, with sterling capped as GBP/JPY stops were executed under 121.00.