Asian FX Outlook: Wait-and-see ahead of Fed's policy meeting
|Main topics for Tuesday
Quiet day in the Forex market ahead of the much anticipated Federal Reserve monetary policy meeting.
Bitcoin breaks above 17k on the inauguration day of futures trading on the CBOE exchange. The largest CME exchange is due to launch Bitcoin futures on Dec 18th.
The US Dollar is heading into Tuesday's trading quite neutral, following a relatively flat US JOLTs job openings for October.
Australia's business conditions/confidence, coupled with Q3 home price index, are the only standout events in Asia.
UK inflation figures, including core CPIs, production price, and retail price indexes. Overall, the data is expected to keep pressing higher.
German ZEW economic sentiment, a leading indicator of economic health, which potentially provides clues on the future economic activity in Germany, will likely have an impact on the Euro.
A look at Forex majors
EUR/USD failed to find acceptance above the 1.18 level, with the constant decline in German vs US 10y yield spreads partly to blame.The close near the daily lows is discouraging for buyers.
GBP/USD continues to correct lower following the deal over a Brexit divorce bill between the European Union and the UK. Support at 1.34 is the next critical battlefield, with UK inflation numbers to determine the next bias.
USD/JPY climbed for a third day in a row, with Monday's price action reflecting the loss of interest ahead of the Federal Reserva policy meeting. The appreciation of the rate is occurring in decreasing volume, not the ideal context for further extensions.
AUD/USD found some profit-taking ahead of the 0.75 key level, allowing for a minor rebound towards the 0.7530. A small hiccup in vola might be seen in today's Asian session ahead of the Fed meeting.
What happened?
US Nov employment trends came at 135.9 vs 135.6 prev (revised to 136.2)
US Oct jolts job openings came at 5.996 mln vs 6.090 mln exp and 6.093 mln prev (revised to 6.177 mln)
Explosion reported in New York commuter hub, with a suspect currently held in custody.
UK's PM MAY has increased her optimism over Brexit talks following last week's deal.
US Treasury predicts an extra $1.8 trillion revenue from tax cuts.
Events coming up
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