9 Apr 2014
CHoppy USD trading ahead of FOMC minutes
FXStreet (London) - The dollar has seen some choppy trading ahead of the release of the federal open market committee minutes later today.
EUR/USD has swung between USD1.3780 and USD1.3809 with some mild bullish momentum. The pair is currently trading at USD1.3802.
GBP/USD has recovered its earlier slide to USD1.6725 on a return of some risk appetite overnight and an unwinding of yesterday’s bullish sterling momentum. However, sterling regained ground and is currently trading at USD1.6757, up 0.06 percent on the session.
Dollar rebound against yen
The dollar has regained some ground on the yen after yesterday’s big move – breaking back above JPY102.00. The yen was bid up on carry trades with yes strength being the biggest contributing factor to the Nikkei’s woes overnight, losing 2 percent. However, the dollar’s resurgence and a returning appetite for equities should help support some recovery in Japanese equity markets when they re-open.
Exaggerated importance of Fed minutes
The afternoon’s trading is almost entirely dominated by the release of the FOMC minutes at 19:00 GMY, with the importance of the release being blown out of proportion by a lack of top-tier data on the calendar leaving little else for the market to sink its teeth into. The minutes are likely to disappoint anybody looking for a hardline hawkish stance from Yellen. However, they will probably show a continued commitment to the Fed’s schedule of quantitative easing tapering, with the programme being wound up by the end of 2014 in the absence of any black swan events.
EUR/USD has swung between USD1.3780 and USD1.3809 with some mild bullish momentum. The pair is currently trading at USD1.3802.
GBP/USD has recovered its earlier slide to USD1.6725 on a return of some risk appetite overnight and an unwinding of yesterday’s bullish sterling momentum. However, sterling regained ground and is currently trading at USD1.6757, up 0.06 percent on the session.
Dollar rebound against yen
The dollar has regained some ground on the yen after yesterday’s big move – breaking back above JPY102.00. The yen was bid up on carry trades with yes strength being the biggest contributing factor to the Nikkei’s woes overnight, losing 2 percent. However, the dollar’s resurgence and a returning appetite for equities should help support some recovery in Japanese equity markets when they re-open.
Exaggerated importance of Fed minutes
The afternoon’s trading is almost entirely dominated by the release of the FOMC minutes at 19:00 GMY, with the importance of the release being blown out of proportion by a lack of top-tier data on the calendar leaving little else for the market to sink its teeth into. The minutes are likely to disappoint anybody looking for a hardline hawkish stance from Yellen. However, they will probably show a continued commitment to the Fed’s schedule of quantitative easing tapering, with the programme being wound up by the end of 2014 in the absence of any black swan events.