Markets are jittery ahead of key risk on Wednesday when the Federal Open Market Committee (FOMC) meeting and press conference are held.
The news released late on Sunday that Larry Summers had dropped out of the Fed chairmanship race triggered a wave of U.S. dollar selling against the majors during the Monday Asian and European morning session which was completely reversed by mid-afternoon in North America.
Investors will closely watch to see if there will be any scaling back of stimulus, something that has been weakening dollar.
With very little head line news or tier one economic data during the Asian session, most currency pairs merely drifted.
USDJPY opened in Asia at 99.05 and moved higher throughout the session to reach a high of 99.35 yen, finding resistance at this level.
EURUSD moved little from its late US highs, edging lower to $1.3324. With little in the ways of news flow, the pair’s direction was determined by the rising dollar. GBPUSD was mainly rangebound in the session with a 15-point range and support at $1.5887.
AUDUSD began slipping lower ahead of the RBA minutes release to finally fall to $0.9284 after the release.
Looking ahead to economic data scheduled for Tuesday, look out for the following:
the August update on consumer price inflation in the U.K., the ZEW Indicator of Economic Sentiment for Germany, and the NAHB Housing Market Index for the U.S.
Markets are jittery ahead of key risk on Wednesday when the Federal Open Market Committee (FOMC) meeting and press conference are held.
The news released late on Sunday that Larry Summers had dropped out of the Fed chairmanship race triggered a wave of U.S. dollar selling against the majors during the Monday Asian and European morning session which was completely reversed by mid-afternoon in North America.
Investors will closely watch to see if there will be any scaling back of stimulus, something that has been weakening dollar.
With very little head line news or tier one economic data during the Asian session, most currency pairs merely drifted.
USDJPY opened in Asia at 99.05 and moved higher throughout the session to reach a high of 99.35 yen, finding resistance at this level.
EURUSD moved little from its late US highs, edging lower to $1.3324. With little in the ways of news flow, the pair’s direction was determined by the rising dollar.
GBPUSD was mainly rangebound in the session with a 15-point range and support at $1.5887.
AUDUSD began slipping lower ahead of the RBA minutes release to finally fall to $0.9284 after the release.
Looking ahead to economic data scheduled for Tuesday, look out for the following:
the August update on consumer price inflation in the U.K., the ZEW Indicator of Economic Sentiment for Germany, and the NAHB Housing Market Index for the U.S.
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