Market Review - 22/09/2016 21:55GMT
Dollar extends post-FOMC rally before paring gains in NY afternoon
The greenback fell against majority of its peers except the Japanese yen on Thursday as the Federal Reserve's decision to not hike rates and lower its longer-term rate view continued to weigh on the buck.
Versus the Japanese yen, although dollar dropped to session low at 100.10, price pared its losses and staged a short-covering rally to 100.87 in Europe, then marginally higher to an intra-day high at 100.92 in New York afternoon before stabilising.
The single currency traded with a firm bias in Asia and rallied to 1.1248 in Europe on dollar's broad-based weakness following Fed's decision to not act. Euro ratcheted higher to an intra-day high at 1.1257 in New York morning before retreating on profit-taking, price fell back to 1.1200 before moving narrowly near the close..
The British pound also traded with a firm bias in Asia and gained in tandem with euro to 1.3088 in European morning. Renewed buying at 1.3048 lifted the pair and cable rose to an intra-day high at 1.3121 in New York morning before retreating on profit-taking.
In other news, ECB's Knot said 'financial stability n price stability are aligned on a sufficiently long horizon; ECB shud use medium term target sufficiently flexibly.'
On the data front, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits in the week ending September 17 decreased by 8,000 to a seasonally adjusted 252,000 from the previous week's total of 260,000.
Data to be released on Friday:
Japan manufacturing PMI, France GDP, manufacturing PMI, service PMI, manufacturing PMI, service PMI, Germany manufacturing PMI, service PMI, Eurozone manufacturing PMI, service PMI, Canada CPI, retail sales and U.S. manufacturing PMI.
Trendsetter does not warrant or guarantee the accuracy, timeliness or completeness to its service or information contained therein. Trendsetter does not give, whatsoever, warranties, expressed or implied, to the results to be obtained by using its services or information it provided. Users are trading on their own risk and Trendsetter shall not be responsible under any circumstances for the consequences of such activities. Trendsetter and its affiliates, in no event, be liable to users or any third parties for any consequential damages, however arising, including but not limited to damages caused by negligence whether such damages were foreseen or unforeseen.
Recommended Content
Editors’ Picks
EUR/USD trades with negative bias, holds above 1.0700 as traders await US PCE Price Index
EUR/USD edges lower during the Asian session on Friday and moves away from a two-week high, around the 1.0740 area touched the previous day. Spot prices trade around the 1.0725-1.0720 region and remain at the mercy of the US Dollar price dynamics ahead of the crucial US data.
USD/JPY jumps above 156.00 on BoJ's steady policy
USD/JPY has come under intense buying pressure, surging past 156.00 after the Bank of Japan kept the key rate unchanged but tweaked its policy statement. The BoJ maintained its fiscal year 2024 and 2025 core inflation forecasts, disappointing the Japanese Yen buyers.
Gold price flatlines as traders look to US PCE Price Index for some meaningful impetus
Gold price lacks any firm intraday direction and is influenced by a combination of diverging forces. The weaker US GDP print and a rise in US inflation benefit the metal amid subdued USD demand. Hawkish Fed expectations cap the upside as traders await the release of the US PCE Price Index.
Sei Price Prediction: SEI is in the zone of interest after a 10% leap
Sei price has been in recovery mode for almost ten days now, following a fall of almost 65% beginning in mid-March. While the SEI bulls continue to show strength, the uptrend could prove premature as massive bearish sentiment hovers above the altcoin’s price.
US economy: Slower growth with stronger inflation
The US Dollar strengthened, and stocks fell after statistical data from the US. The focus was on the preliminary estimate of GDP for the first quarter. Annualised quarterly growth came in at just 1.6%, down from the 2.5% and 3.4% previously forecast.