USD Up on Fed Decision, BoE and Riksbank Take Their Turn

Fed Revises Down 2019 Dots, But USD Strengthens

The dollar traded higher against most of the other G10 currencies, with NZD and AUD leading by far the losers’ list. The greenback traded virtually unchanged, within a ±0.10% range, against EUR and JPY.

NZD/USD — Technical Outlook

NZD/USD sold off heavily yesterday on the FOMC decision, and took another hit overnight following the disappointment in New Zealand’s GDP data for Q3. NZD/USD is trading below its short-term downside resistance line, drawn from the high of the 4thof December. But, on a slightly bigger picture, the pair sits above its medium-term tentative upside support line taken from the low of 8thof October. That said, given that there is a quite a big distance from that upside line, there is a good chance that NZD/USD could travel further down in the near term.

BoE and Riksbank Take the Central Bank Torch

As for today, we have two more G10 central banks deciding on monetary policy: the BoE and the Riksbank.

GBP/CHF — Technical Outlook

GBP/CHF has been trading sideways between the 1.2500 and the 1.2580 levels since the 12thof December. The current range could be seen as a small bullish flag pattern, which might open the door towards higher areas. However, because the pair is still below its short-term downside resistance line, the upside may be limited. From the short-term perspective, even though there could a be a bit of upside, still, the negativity surrounding this pair puts us in a more cautiously-bearish position.

As for the Rest of Today’s Events

During the European morning, ahead of the BoE decision, we get the UK retail sales for November. Expectations are for both headline and core sales to have rebounded +0.3% mom and +0.2% mom after sliding 0.5% and 0.4% respectively, but this would still drive the yoy rates lower. The case for declining yoy rates is also supported by the tumble in the yearly rate of the BRC retail sales monitor for the month. In any case, we expect this release to pass unnoticed due to the BoE decision.

--

--

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.