CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
☰
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Open account
✖

FX in a 8216 patient 8217 consolidation mode

Article By: ,  Financial Analyst
March 17, 2015 10:00 AM

The FX markets are trading with reduced volatility ahead of the FOMC meeting tomorrow despite oil reaching a fresh 9-year low yesterday. The euro has traded back above 1.06 this morning with sources suggesting that position adjustment to what technically looks to be an oversold euro provided the catalyst for the early move.

The BoJ kept monetary policy unchanged with a majority voting pattern of 8-1 as monetary stimulus levels remained at 80 trillion JPY. The only change came in the form of the inflation outlook as the BoJ revised the current view to zero from 0.5% despite their expectations that the longer-term view is rising. Going forward, the BoJ is likely to expand the monetary policy at the October 30th meeting, when it updates its outlook and the effects of fiscal stimulus are likely to fade.

The RBA minutes caused an initial 25 point dip to the Australian dollar as the central bank again reiterated its stance on their currency with ‘AUD above fundamental value given commodity falls’ as the statement kept to the ‘wait and see’ policy as members ‘saw advantages in receiving more data to indicate whether or not the economy was on the previously forecast path’ adding ‘case to ease policy further might emerge’.

We receive the latest HICP reading from the EU this morning along with the ZEW survey, although the significance of this data is less important as we await the effect of QE. US housing data is released this afternoon ahead of the FOMC tomorrow where all eyes will be on the ‘patient’ phrase and if it is removed from the forward guidance statement.

 

 

EUR/USD
Supports 1.0435-1.0340-1.0285 | Resistance 1.0665-1.0825-1.0990

 

 

USD/JPY
Supports  119.50-118.65-116.70 | Resistance 122.45-123.70-124.15

 

 

GBP/USD
Supports 1.4550-1.4350-1.4250 | Resistance 1.5100-1.5250-1.5345

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. CFD and Forex Trading are leveraged products and your capital is at risk. They may not be suitable for everyone. Please ensure you fully understand the risks involved by reading our full risk warning.

City Index is a trading name of StoneX Financial Ltd. Head and Registered Office: 1st Floor, Moor House, 120 London Wall, London, EC2Y 5ET. StoneX Financial Ltd is a company registered in England and Wales, number: 05616586. Authorised and regulated by the Financial Conduct Authority. FCA Register Number: 446717.

City Index is a trademark of StoneX Financial Ltd.

The information on this website is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement.

© City Index 2024