21 Aug 2014
USD/JPY - ..... The greenback maintains a firm undertone in Tokyo morning following yesterday's mildly hawkish FOMC minutes, price easily penetrated NY high at 103.85 at Tokyo open n climbed to a fresh 4-1/2 month peak of 103.96 as gain in the Nikkei boosted risk sentiment.
As the follow-through buying from Asian traders indicates upside bias remains, suggesting buying dlr on dips is the way to go, however, investors should stay alert ahead of the daily key res at 104.13 (Apr 4 high) as only a firm rise above there would indicate an 'upside break' of 7-month broad range of 100.76-104.13 has taken place n yield further headway twd 105.00 later this month. Bids are noted at 103.70/60 n then 103.50/45 with stpps emerging below 103.30. On the upside, offers are placed at 104.00 n with mixture of offers n stops located at 104.10-20.
Pay attention to a slew of U.S. economic data starting with weekly jobless claims, Philly Fed business index, existing home sales. Another key event is the 3-day annual Kansas City Fed symposium in Jackson Hole, Wyoming. Fed Chair Janet Yellen & ECB Governor Mario Draghi will both speak in the event on Fri.
USD/JPY - .... U.S. dollar strengthened to a 4-1/2 month high at 103.75 versus the Japanese yen after the release of FOMC minutes. Bids are now located at 103.60-50 and more at 103.30 with stops only seen below 103.20. On the upside, some offers are tipped at 103.85-95 with mixture of offers and stops seen at 104.00 option barrier.
Recommended Content
Editors’ Picks
USD/JPY briefly recaptures 160.00, then pulls back sharply
Having briefly recaptured 160.00, USD/JPY pulls back sharply toward 159.00 on potential Japanese FX intervention risks. The Yen tumbles amid news that Japan's PM lost 3 key seats in the by-election. Holiday-thinned trading exaggerates the USD/JPY price action.
AUD/USD extends gains above 0.6550 on risk flows, hawkish RBA expectations
AUD/USD extends gains above 0.6550 in the Asian session on Monday. The Aussie pair is underpinned by increased bets of an RBA rate hike at its May policy meeting after the previous week's hot Australian CPI data. Risk flows also power the pair's upside.
Gold stays weak below $2,350 amid risk-on mood, firmer USD
Gold price trades on a softer note below $2,350 early Monday. The recent US economic data showed that US inflationary pressures stayed firm, supporting the US Dollar at the expense of Gold price. The upbeat mood also adds to the weight on the bright metal.
Ethereum fees drops to lowest level since October, ETH sustains above $3,200
Ethereum’s high transaction fees has been a sticky issue for the blockchain in the past. This led to Layer 2 chains and scaling solutions developing alternatives for users looking to transact at a lower cost.
Week ahead: Hawkish risk as Fed and NFP on tap, Eurozone data eyed too
Fed meets on Wednesday as US inflation stays elevated. Will Friday’s jobs report bring relief or more angst for the markets? Eurozone flash GDP and CPI numbers in focus for the Euro.