A snapshot view of yesterday’s New York - London session with technical notes.
As expected, US data dominated the headlines
- Advance GDP at 4%: Its highest since Jan 2010; GDP Price Index sits at 2%
- FED keeps rates on hold at 0.25%. Hawks are still calling for a rise in Q4 but Doves suspect it will more likely be Q2 2015
- FOMC Statement continued to talk highly of the economy but remained tight-lipped over interest rate rises.
- Tapering to continue at the rate of $10bn which is estimated to end QE3 in OCtober with the final $15bn.
MIxed data set from Europe
- Spanish CPI contracted -0.3% whilst GDP beat expectations by 0.1% to sit at 0.6%, its highest since Feb 2008
- German Preliminary CPI remains steady rate of growth of 0.3%
FOREX:
DXY 81.50 target achieved; Resistance at 81.50, 81.60; Support 81.36, 81.20. For further analysis view USD may have seen 6.4yr cycle low
AUDUSD Penetrated 0.932 intraday
EURUSD Below 1.34 but closed with bullsh hammer on high volume to suggest potetnail retracement; Bearish below 1.345
GBPUSD Broke Feb '14 bullish trendline; Bearish on D1 below 1.695 and intraday below 1.691
USDCAD Bullish breakout continues; Support at 1.089 and targeting 1.095
USDCHF
USDJPY Highest close in 16-weeks and broke 2x bearish resistance lines from the 2013 highs; Support 102.62; Resistance 103.21-35
NZDUSD Bullish hammer remains above 200 day MA to suggest potential retracement/sideways trading; Resistance 0.8524; Support 0.84, 0.8426, 