Confirming you are not from the U.S. or the Philippines

By giving this statement, I explicitly declare and confirm that:
  • I am not a U.S. citizen or resident
  • I am not a resident of the Philippines
  • I do not directly or indirectly own more than 10% of shares/voting rights/interest of the U.S. residents and/or do not control U.S. citizens or residents by other means
  • I am not under the direct or indirect ownership of more than 10% of shares/voting rights/interest and/or under the control of U.S. citizen or resident exercised by other means
  • I am not affiliated with U.S. citizens or residents in terms of Section 1504(a) of FATCA
  • I am aware of my liability for making a false declaration.
For the purposes of this statement, all U.S. dependent countries and territories are equalled to the main territory of the USA. I accept full responsibility for the accuracy of this declaration and commit to personally address and resolve any claims or issues that may arise from a breach of this statement.
We are dedicated to your privacy and the security of your personal information. We only collect emails to provide special offers and important information about our products and services. By submitting your email address, you agree to receive such letters from us. If you want to unsubscribe or have any questions or concerns, write to our Customer Support.
Octa trading broker
Open trading account
Back

Kiwi bulls take control in Asia, BOE & Fed Minutes Eyed

FXStreet (Mumbai) - The Kiwi emerged the stronger amongst the G10 currencies while the improved consumer sentiment in Australia pushed the AUD higher. The USD/JPY pair accelerated gains despite upbeat Japanese GDP figures as markets gear up for Fed minutes to be released later today.

Key headlines in Asia

Japanese Q1 GDP beats expectations

Japanese EcoMin defines contributors to Q1 expansion

Australia's May consumer sentiment surges. - Westpac

Dominating themes in Asia - centered on JPY, AUD, NZD

Broad yen weakness remained the underlying theme in Asia, despite a pickup in Japanese GDP numbers, which lifted the Asian equities. While the US dollar is seen in a consolidative mode and defends mild gains after rallying over 1% on Tuesday on better than expected US housing data.

The Kiwi remains the top gainer mainly driven by a short-covering rally after the recent weakness and as traders brace for NZ annual budget release tomorrow. The AUD/USD pair reversed previous losses and climbed higher after the Australian consumer confidence gauge rebounded into optimistic territory in May. While USD/JPY strives for 121 barrier as markets now await Fed’s minutes release for further momentum.

Heading into Europe - centered on EUR, GBP

Bank of England’s (BOE) Monetary Policy Committee (MPC) minutes and Fed minutes are likely to remain the main highlights in a rather data-light trading session.

Today’s publication of the BOE MPC minutes is expected to offer no surprise in voting composition among the nine-strong rate-setting committee as both external and internal price pressures remain significantly weak, leading to deflation in April. The UK slipped into deflation in April for the first time since 1960.

Later in the North American session, the much awaited Fed Minutes will be published at 18GMT. After an almost eventless Federal Reserve (Fed) meeting, the minutes from the April meeting will provide more details on officials' views about the deterioration in the data and how it impacted their rate hike plans.

Joseph LaVorgna from Deutsche Bank believes the minutes are likely to reinforce the Fed's official line that all meetings are "in play", but he doubts whether "this is the case in reality."

He adds, "We find it hard to believe that the Fed's first hike in interest rates in what will be nine years would be announced at a non-press conference gathering (July 31 & October 28). And, we doubt the Fed can hike in December because of the optics of doing so during the holiday shopping season, but more importantly, because financial markets are notoriously illiquid."

EUR/USD Technicals

Valeria Bednarik, chief analyst at FXStreet explains, "In the 4 hours chart, the Momentum indicator continues to head lower, despite in extreme oversold levels, whilst the RSI hovers around 31. The price stalled at the 61.8% retracement of the bearish run between February and March, around 1.1120, and buyers have surged around it ever since the price broke above it by the end of April. Should the decline extend below it, the slide will likely extend towards the 1.1000 figure, as bears will retake control of the pair."

BoJ expected to ease further in April 2016 – Nomura

Research Analysts at Nomura, expect additional monetary easing by the Bank of Japan in April 2016, and further believe that the central bank would start looking into reducing the value of its long-term JGB purchases.
Read more Previous

FOMC Minutes Preview: Rate hike this year likely to be the key message – DB

Economists at Deutsche Bank, preview the FOMC Minutes, highlighting the key messages to be expected from the Fed in terms of rate hike guidance, and further view September to be the likely timing for a hike.
Read more Next