Flash: Currencies defensive ahead of FOMC - DBS Group

FXstreet.com (Barcelona) - DBS Group Strategists note that currencies turned defensive ahead of next week’s FOMC meeting scheduled for December 17-18.

Key Quotes

“Fed Chairman Ben Bernanke will hold his last post FOMC press conference and the Fed will release its economic summary projections.”

“The US Treasury yield curve has firmed across the board. While they do not see any rate hike in 2014, Fed Funds Futures brought forward for the first Fed hike to mid-2015 from late 2015.”

“The market is sending a message that taper is no longer a zero probability at next week’s FOMC.”

USD/JPY retreats from high since 2008

Having soared overnight, breaking into fresh annual territory, USD/JPY posted a high since 2008 at 103.92, before declining to where it is presently trading at 103.54, up 0.23%.
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Karen Jones, Head of Technical Analysis at Commerzbank notes that USD/JPY has eroded the 103.74 2013 high.
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