HiWayFX - Market News

[HiWayFX]

EUR / USD
The EUR declined 0.09% against the USD and closed at 1.0905 .
EUR/USD rose slightly on Wednesday halting a three-day losing streak, amid mixed economic data in the U.S. ahead of Friday's critical jobs report for the month of July.
The pair is expected to find support at 1.0856 . and a fall through could take it to the next support level 1.0806 .
The pair is expected to find its first resistance at 1.0947 , and a rise through could take it to the next resistance level of 1.0988 .

GBP / USD
The GBP declined 0.15% against the USD and closed at 1.5602 .
BNP Paribas recommends long GBP exposure heading into Thursday's Bank of England (BoE) meeting.
The pair is expected to find support at 1.5533, and a fall through could take it to the next support level of 1.5464 .
The pair is expected to find its first resistance at 1.5662 , and a rise through could take it to the next resistance level of 1.5722.


- See more at: https://www.hiwayfx.com/market-news/market-outlook-6082015#sthash.BCewZnzq.dpuf

 

[HiWayFX]

Fed Officials in July Saw Rate Rise Conditions Approaching

Federal Reserve officials said last month that while conditions for raising interest rates were approaching, they need more confidence inflation is moving toward their goal, according to meeting minutes that prompted investors to reduce bets for a September liftoff.
Most meeting participants “judged that the conditions for policy firming had not yet been achieved, but they noted that conditions were approaching that point,” according to minutes of the July 28-29 Federal Open Market Committee session, released Wednesday in Washington.

A headline on the minutes was inadvertently released by Bloomberg 24 minutes before a 2 p.m. embargo set by the Fed.
The details come four weeks before the Fed’s September meeting, when most economists forecast the central bank will raise its benchmark interest rate for the first time since 2006. Policy makers say a decision to raise rates will hinge on continued improvement in the labor market and confidence that inflation will move higher.

“Almost all members” indicated that “they would need to see more evidence that economic growth was sufficiently strong and labor markets conditions had firmed enough for them to feel reasonably confident that inflation would return to the Committee’s longer-run objective over the medium term,” the minutes show. “Members” refers to meeting participants who are voting on FOMC policy this year.
Investors reacted to the news by reducing the probability the Fed would tighten next month to 38 percent, based on pricing of federal funds futures contracts at around 2:30 p.m. in New York, compared to 50 percent earlier Wednesday.

Inflation Confidence
“My immediate reaction is that it should reduce the probability of a September rate hike a little bit,” said Guy LeBas, managing director at Janney Montgomery Scott LLC in Philadelphia. “The biggest point to me is that there’s no evidence of confidence of rising inflation.”
Economists prior to the release of the minutes had been more confident of September liftoff. According to a Bloomberg survey taken Aug. 7-12, 77 percent said the Fed will act next month.

Source: Bloomberg
- See more at: https://www.hiwayfx.com/market-news...e-conditions-approaching#sthash.ogsXq3T1.dpuf

 

[HiWayFX]

Asian Currencies Record Biggest Monthly Decline in Three Years

Malaysia's ringgit dropped more than twice as much as peers
Selloff in regional currencies spurred by yuan devaluation
Asia’s currencies posted their biggest monthly loss in three years, led by Malaysia’s ringgit, after a yuan devaluation heightened the risk of a currency war in the region as the U.S. prepares to raise interest rates.

- See more at: https://www.hiwayfx.com/market-news/asian-currencies-record-biggest-monthly-decline-three-years

 

[HiWayFX]

EUR/USD languishes near lows, 1.1200 in sight

EUR/USD pair failed at 1.13 barrier in the European session and accelerated losses thereon, as the subdued Euro zone CPI and the broad based US dollar rebounded weighed on the major.

EUR/USD back near 1.1200 levels
The EUR/USD pair trades -0.32% lower at 1.1233, testing fresh session lows struck at 1.1227 shortly after EZ CPI data. The main currency pair snapped its recovery and extends its downslide for the third straight session as the common currency was sold into the sluggish Eurozone price pressures print.

The latest CPI figures from the euro zone for August posted a sharp rise from -0.6% to 0.0% month-on-month, while the yearly change decreased from 0.2% to 0.1%. The same applied for the core gauge on a yearly basis, which also shed 0.1% to 0.9%.

Moreover, a major turnaround in risk conditions during the European session, with the appetite for riskier assets improving, favoured the US currency at the expense of the euro.

Meanwhile, the main focus today remains on US CPI figures for August, which are expected to have risen a mere 0.2% over the year.

However, markets are likely to remain cautious as the Fed meeting commences later today, with final verdict on the rates due to be announced tomorrow.

EUR/USD Technical Levels
The pair has an immediate resistance at 1.1299 (Today’s High), above which gains could be extended to 1.1328 (Sept 15 High) levels. On the flip side, support is seen at 1.1204 (Sept 1 Low) below which it could extend losses to 1.1170 (Sept 10 Low) levels.