USD Trading Outlook
U.S. Dollar Trading (USD) recent economic data has started to push up yields on US treasuries and this is directly affecting the USD/JPY which has broken back above Y80 for the first time in 3 months. September Durable Goods Orders surged 9.9% vs. -13% last month. Q3 GDP tonight will be critical for the recent Dollar strength. Looking ahead, Q3 GDP forecast at 1.9% vs. 3.3% q/y.
U.S. Dollar Trading (USD) traders got mixed action yesterday with a rally in Europe reversed later in the US session. Most FX pairs were little changed with the risk sensitive currencies doing the best. The FOMC was a non event with rates kept at 0.25% and the language was not changed in the accompanying statement. China’s October HSBC Flash Manufacturing PMI sparked some buying with an increase to 49.1 a three month high and reversal of the recent slide in the survey. Looking ahead, Weekly Jobless Claims forecast at 370k vs. 388k previously. Also September Pending Home Sales forecast at 2.1% vs. -2.6% previously.
U.S. Dollar Trading (USD) demand for safe haven assets helped the Dollar gain across the board with EUR/USD falling below 1.3000 and USD/JPY testing Y80 both key levels. The lack of bounce from the large sell off on Friday makes this move lower potentially dangerous technically. Company earnings from the US are weighing with cautious outlooks. Looking ahead, FED FOMC Meeting forecast to hold at 0.25% but focus will be on the statement accompanying the decision.
U.S. Dollar Trading (USD) the Dollar pared back some of Friday’s gains as US stocks stabilized and bounced into the close. USD/JPY is getting a lot of attention with the very quiet major beginning to stir with daily gains towards the key top side resistance at Y80. Looking ahead, Presidential Debate.
U.S. Dollar Trading (USD) the positive mood seen was undone as US stocks slumped dramatically. In the biggest one day fall since June we saw the Dow Jones down over 200 points and the Nasdaq down over 2%. The main catalysts for the move lower were disappointing company earnings and a lack of progress at the EU summit. Looking ahead, FOMC Member Pianalto Speaks.
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