Fed Appears Hawkish; SNB, BoE, and ECB Take the Torch

MARKET SENTIMENT IMPROVES EVEN AFTER A HAWKISH FED

The USD dollar traded mixed against the other major currencies on Wednesday and during the Asian session Thursday. It gained versus JPY and CHF, while it underperformed against AUD, NZD, and EUR in that order. The greenback was found virtually unchanged against GBP and CAD.

AUD/USD — TECHNICAL OUTLOOK

AUD/USD traded higher yesterday, after hitting support at 0.7094, near the upside support line drawn from the low of December 3rd. That said, the recovery was paused near the key resistance of 0.7182, which has been acting as a ceiling since the beginning of the month. Thus, we would like to see a clear break above that barrier before we get confident on more advances.

SNB, BOE, AND ECB TAKE THEIR TURN IN DECIDING ON MONETARY POLICY

As for today, the central bank torch will be passed to the SNB, the BoE and the ECB.

EUR/GBP — TECHNICAL OUTLOOK

EUR/GBP rebounded decently yesterday, after it hit support at 0.8485. However, the rebound remained short-lived near the 0.8528 zone, still below the downside resistance line taken from the high of December 8th. Thus, with that in mind, we would expect the bears to recharge again at some point soon, and push the rate lower.

AS FOR THE REST OF TODAY’S EVENTS

Besides those three decisions, we also get the preliminary manufacturing and services PMIs from the Eurozone, the UK and the US, as well as the US industrial production for November.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
JFD

JFD

JFD is a leading Group of Companies offering financial and investment services and activities.