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3 Dec 2014
US Session recap: Greenback bid on US 2015 inflation outlook
FXStreet (Guatemala) - Today, Fed officials Fischer, Dudley and Lacker spoke up and despite the oil prices and bearish outlook, inflation is still a cause for concern in the domestic economy of the US and they pointed to rate rises in 2015 when speaking early in the US session. Moreover, Fisher explained that lower prices in oil are good for the US economy.
EUR/USD has been taken lower as commodity prices again drive the market and Central bank divergences play their part also, underpinning the greenback’s strength across the board. The pair dropped below 1.24 losing ground in a series of supply that flowed over from the European session and took out 1.2420 support with ease.
GBP/USD was less of a mover in the US session but back on the offer in general with the US dollar rising across the board in the same tone and in respect of interest rate outlooks in the US for 2015 and commodity prices coming back off.
USD/CAD was stable on the bid after the rally that took the pair on the back of a slide in oil again on to the 1.14 handle. The high was 1.1426 in early US trade and sideways within a tight range thereafter.
USD/JPY caught the markets attention with a new and higher price on the 119 handle. It was supported there after in respect of Moody’s downgrading of the Japanese economy and bond prices have started to have their part of the action adding pressure on the Japanese currency.
NZD/USD was also pressured lower after not just a full blown rally in the greenback, but trodden on again due to global dairy prices falling .The Fonterra global daily price fell by 1.1% which however is an improvement on previous -3.1%. The bird was trading below 0.7800 after a drop from 0.7840 marking a low of 0.7784.
AUD/USD was trading lower after the European session but remained contained within a tight range throughout the US session, with any attempts at the upside met with supply at 0.8460, again on a strong US dollar. Echo’s of the RBA’s statement continued to play their part as concerns are raised in respect of global commodity prices and the value of the Australian dollar currency.
Key events:
Federal Reserve Lacker explained goals are still their objective;
Fischer explained and suggested that low oil price good for US growth
Global dairy price dropping 1.1%
Gold lower ($1,193 the low, resisted $1,200)
Crude lower ($70.03 the low down from $72.00 resistance)
EUR/USD has been taken lower as commodity prices again drive the market and Central bank divergences play their part also, underpinning the greenback’s strength across the board. The pair dropped below 1.24 losing ground in a series of supply that flowed over from the European session and took out 1.2420 support with ease.
GBP/USD was less of a mover in the US session but back on the offer in general with the US dollar rising across the board in the same tone and in respect of interest rate outlooks in the US for 2015 and commodity prices coming back off.
USD/CAD was stable on the bid after the rally that took the pair on the back of a slide in oil again on to the 1.14 handle. The high was 1.1426 in early US trade and sideways within a tight range thereafter.
USD/JPY caught the markets attention with a new and higher price on the 119 handle. It was supported there after in respect of Moody’s downgrading of the Japanese economy and bond prices have started to have their part of the action adding pressure on the Japanese currency.
NZD/USD was also pressured lower after not just a full blown rally in the greenback, but trodden on again due to global dairy prices falling .The Fonterra global daily price fell by 1.1% which however is an improvement on previous -3.1%. The bird was trading below 0.7800 after a drop from 0.7840 marking a low of 0.7784.
AUD/USD was trading lower after the European session but remained contained within a tight range throughout the US session, with any attempts at the upside met with supply at 0.8460, again on a strong US dollar. Echo’s of the RBA’s statement continued to play their part as concerns are raised in respect of global commodity prices and the value of the Australian dollar currency.
Key events:
Federal Reserve Lacker explained goals are still their objective;
Fischer explained and suggested that low oil price good for US growth
Global dairy price dropping 1.1%
Gold lower ($1,193 the low, resisted $1,200)
Crude lower ($70.03 the low down from $72.00 resistance)