Markets eagerly await the FOMC statements later today
US markets rose yesterday and ended at five-week highs after upbeat housing data, as the Federal Reserve considered further moves to stimulate the economy. A recent batch of disappointing U.S. economic data such as industrial production, retail sales and jobless claims, has contributed to the optimism about further stimulus to be announced following the conclusion of its two-day monetary policy meeting on Wednesday, along with continued concerns about the impact of the ongoing financial crisis in Europe
That good old “risk on” feeling was back in markets, and for a day they traded in a fairly conventional rally pattern. Stocks were up in the US (0.98% on the S&P 500), the Euro rallied against the USD, with EURUSD trading above 1.27 at times during the day, and WTI appreciated by close to a dollar. Today, everything seems to be on hold waiting for the FOMC statements this afternoon. Traders will begin to position themselves prior to the same, but markets seem to have an eerie calm as the day begins.
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UPCOMING EVENTS :
2012-06-20 08:30 | UK - Bank of England Minutes
2012-06-20 16:30 | US - Fed Interest Rate Decision
2012-06-20 18:00 | US - FOMC Economic Projections
2012-06-20 18:15 | US - Fed's Monetary Policy Statement and press conference
FOREX NEWS :
2012-06-20 04:32 GMT | Japan Apr All Industry Activity Index (MoM) 0.1%
2012-06-20 04:23 GMT | GBP/USD consolidates around 1.5720; BoE Minutes eyed
2012-06-20 04:23 GMT | EUR/USD awaits Greek government coalition below 1.2700
2012-06-20 03:47 GMT | GBP/AUD sits below 1.5450 after overnight dip to 2-mth lows
EURUSD : 1.26783 / 1.26786
DAILY WEEKLY MONTHLY
1.2820 | 1.2784 | 1.2744
1.2668 | 1.2632 | 1.2592
SUMMARY : Up
TREND : Up trend
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Technical are very mixed - RSI (sub-50) remains the lone technical holdout, limiting upside. The overall outlook remains bearish, from here we still see room for short-term upside before a fresh lower top is sought out. Supports are seen at the 10-DMA line at 1.2568 and then at 1.2552. Whereas resistance levels are seen at 1.2748 and then at the 55-DMA line at 1.2854.
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GBPUSD : 1.57290 / 1.57297
DAILY WEEKLY MONTHLY
1.5785 | 1.5764 | 1.5732
1.5679 | 1.5658 | 1.5626
SUMMARY : Up
TREND : Up trend
MA10 : Bullish
MA20 : Bullish
STOCHASTIC : Overbought
MARKET ANALYSIS - Intraday Analysis
Technical's continue to read mixed - resistance near 1.5700 continues to be seen as the GBP is sitting right on the 1.57price line. risks seem tilted to the upside to allow for a necessary short-term corrective bounce after setbacks stalled, look for additional upside towards the 1.5800-1.6000. Supports are seen at the 10-DMA line at 1.5563 and then at the 21-DMA line 1.5559. Whereas resistance levels are seen at the 21-DMA upper Bollinger level at 1.5790 and then at 1.5802.
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USDJPY : 78.893 / 78.898
DAILY WEEKLY MONTHLY
79.760 | 79.533 | 79.365
78.970 | 78.750 | 78.575
SUMMARY : Neutral
TREND : Sideway
MA10 : Bearish
MA20 : Bullish
STOCHASTIC : Neutral
MARKET ANALYSIS - Intraday Analysis
Technical's are bearish - decline nearing 200 day MA (78.76); support expected at 78.61. After attempts at recovery the market should continue to break higher, set on a retest and break of the 2012 highs by 84.20 further up. However, at this point, we will need to see a break and close back above 80.00. Supports are seen at 78.61/10 and then at 77.99. Whereas, resistance levels are seen at 79.31/51 and then at 79.75.
Source: FX Central Clearing Ltd, (http://www.fxcc.com)