US Brief: US Industrial Production -0.1 % vs +0.3 % expected. US Manufacturing Production -0.4 % vs +0.3 % f/c. US NY Empire State Manufacturing Index 27.54 vs 16.00 f/c.
Global Markets: S&P 500 down 0.05 %, DJIA gained 0.25 %. Gold at $1234 (+0.20 %), Silver at $18.63 (+0.10 %), Crude Oil at $92.04 (+0.70 %). US 10 year yield at 2.59.
FX Overview: EUR/USD opened in NY around 1.2920 and shortly after hit a low of 1.2907. The pair bounced after the disappointing US industrial production data and eventually reached 1.2950, where it hit into decent offers from leveraged funds. It fell back to 1.2930 and is consolidating around 1.2935 as we are heading into the Asia open. 1.2880-1.29 is likely to be decent support ahead of the FOMC, while resistance lies at 1.2980 up to 1.30. Trading this range pre-FOMC seems likely the best strategy.
Cable started the session around 1.6245. Flows were light and the pair consolidated in a 1.6220-40 range for most of the North American trading session. EUR/GBP bounced off the 0.7945 support level and seems to be heading for another test of the 0.7980 level soon.
AUD/USD filled the weekend gap, but the earlier mentioned offers at 0.9050 were able to cap the topside for now. Key support now at 0.8982 and then 0.8950. Intraday stops reported through 0.90. NZD/USD recovered from a low of 0.8120 to 0.8180. A break above 0.82 seems possible, but the topside will likely be capped at 0.8220 ahead of the FOMC. USD/CAD hit a low of 1.1034 after it struggled with the 1.11 resistance level for a while. Solid bids still reported between 1.1020 and 1.1030, while larger stops resting beneath the big figure. Dealers note that CTAs and macro funds were heavy sellers of EUR/CAD and GBP/CAD today.
Looking ahead, RBA Assistant Governor Kent will speak 0000 GMT, the RBA minutes will be released at 0130 GMT and BoJ Governor Kuroda will speak at 0530 GMT.
Good luck!
Global Markets: S&P 500 down 0.05 %, DJIA gained 0.25 %. Gold at $1234 (+0.20 %), Silver at $18.63 (+0.10 %), Crude Oil at $92.04 (+0.70 %). US 10 year yield at 2.59.
FX Overview: EUR/USD opened in NY around 1.2920 and shortly after hit a low of 1.2907. The pair bounced after the disappointing US industrial production data and eventually reached 1.2950, where it hit into decent offers from leveraged funds. It fell back to 1.2930 and is consolidating around 1.2935 as we are heading into the Asia open. 1.2880-1.29 is likely to be decent support ahead of the FOMC, while resistance lies at 1.2980 up to 1.30. Trading this range pre-FOMC seems likely the best strategy.
Cable started the session around 1.6245. Flows were light and the pair consolidated in a 1.6220-40 range for most of the North American trading session. EUR/GBP bounced off the 0.7945 support level and seems to be heading for another test of the 0.7980 level soon.
AUD/USD filled the weekend gap, but the earlier mentioned offers at 0.9050 were able to cap the topside for now. Key support now at 0.8982 and then 0.8950. Intraday stops reported through 0.90. NZD/USD recovered from a low of 0.8120 to 0.8180. A break above 0.82 seems possible, but the topside will likely be capped at 0.8220 ahead of the FOMC. USD/CAD hit a low of 1.1034 after it struggled with the 1.11 resistance level for a while. Solid bids still reported between 1.1020 and 1.1030, while larger stops resting beneath the big figure. Dealers note that CTAs and macro funds were heavy sellers of EUR/CAD and GBP/CAD today.
Looking ahead, RBA Assistant Governor Kent will speak 0000 GMT, the RBA minutes will be released at 0130 GMT and BoJ Governor Kuroda will speak at 0530 GMT.
Good luck!
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