Back
20 Sep 2013
Session Recap: The rally that wasn't; The USD doesn't suffer too much
FXstreet.com (San Francisco) - Dude, where is my rally? While market consensus was about to see a big continuation rally in US stocks and more declines in the Dollar, the reality was kind of different.
The greenback traded under pressure on Thursday, true. But loses were limited. In fact, the USD advanced against almost all of his major competitors. The US Dollar Index posted a decent bounce off yesterday’s lows, hovering over session peaks around 80.48.
The EUR/USD advanced for third day to reach fresh highest level since February 7th at 1.3567. After consolidating above the 1.3500 area, the Euro is closing at 1.3530. In the 4 hours chart, "indicators maintain a positive tone, heading higher in overbought territory and following a limited correction," comments FXstreet.com Chief Analyst Valeria Bednarik. "Further correction may reach the 1.3450 area, yet it won’t be easy to a see a break below that level."
The GBB/USD declined 0.47% on the day with the cable closing around 1.6020 in its first negative day in the last three sessions. The USD/CAD bounced at 1.0180, lowest since June 19th and currently it is rising firm at 1.0265. The AUD/USD is trading back below 0.9450 with the Aussie finishing the day at 0.9445.
The story behind the USD/JPY is different. After the collapse to 97.78 in the post-Fed reaction, the Dollar traded higher against the Yen in another chapter of the currency war. "The rapid-fire recovery in USD/JPY may have caught some traders by surprise but new highs in the Nikkei helped to lift all Yen pairs and the prospect of more stimulus from the Bank of Japan is contributing to the move," affirmed in a recent report BK Asset Management analyst Kathy Lien.
Despite the overnight news from Japan were good enough to support the Yen, "BoJ member Kiuchi said the central bank could be influenced by external factors such as market expectations and will be forced to respond in such a way," continued Lien. That's mean that the BoJ would answer with more stimulus and weakening the currency to the Fed no taper decision.
Remember, don't fight the central bank!
Main headlines in the American session:
US: Initial Jobless Claims rose to 309K
Canada: Wholesale Sales rose 1.5% in July
US: Current Account deficit at $98.89 bn in Q2
US: Philadelphia Fed Manufacturing Survey soars to 22.3 in September
US: Existing Home Sales at highest level in six-and-a-half years in August
Magnitude 5.8 earthquake hits Fukushima
All-year records for metals printing unseen growth in 4 years
Wall Street closed mixed on Fed decision's hangover
The greenback traded under pressure on Thursday, true. But loses were limited. In fact, the USD advanced against almost all of his major competitors. The US Dollar Index posted a decent bounce off yesterday’s lows, hovering over session peaks around 80.48.
The EUR/USD advanced for third day to reach fresh highest level since February 7th at 1.3567. After consolidating above the 1.3500 area, the Euro is closing at 1.3530. In the 4 hours chart, "indicators maintain a positive tone, heading higher in overbought territory and following a limited correction," comments FXstreet.com Chief Analyst Valeria Bednarik. "Further correction may reach the 1.3450 area, yet it won’t be easy to a see a break below that level."
The GBB/USD declined 0.47% on the day with the cable closing around 1.6020 in its first negative day in the last three sessions. The USD/CAD bounced at 1.0180, lowest since June 19th and currently it is rising firm at 1.0265. The AUD/USD is trading back below 0.9450 with the Aussie finishing the day at 0.9445.
The story behind the USD/JPY is different. After the collapse to 97.78 in the post-Fed reaction, the Dollar traded higher against the Yen in another chapter of the currency war. "The rapid-fire recovery in USD/JPY may have caught some traders by surprise but new highs in the Nikkei helped to lift all Yen pairs and the prospect of more stimulus from the Bank of Japan is contributing to the move," affirmed in a recent report BK Asset Management analyst Kathy Lien.
Despite the overnight news from Japan were good enough to support the Yen, "BoJ member Kiuchi said the central bank could be influenced by external factors such as market expectations and will be forced to respond in such a way," continued Lien. That's mean that the BoJ would answer with more stimulus and weakening the currency to the Fed no taper decision.
Remember, don't fight the central bank!
Main headlines in the American session:
US: Initial Jobless Claims rose to 309K
Canada: Wholesale Sales rose 1.5% in July
US: Current Account deficit at $98.89 bn in Q2
US: Philadelphia Fed Manufacturing Survey soars to 22.3 in September
US: Existing Home Sales at highest level in six-and-a-half years in August
Magnitude 5.8 earthquake hits Fukushima
All-year records for metals printing unseen growth in 4 years
Wall Street closed mixed on Fed decision's hangover