Sep. 19: Asian session
US dollar fell yesterday versus its peers as the Fed unexpectedly kept the current pace of asset purchases that tend to debase the greenback, while the economists expected it to taper quantitative easing. Chairman Ben Bernanke refused to commit to begin reducing the bond purchases this year. The Bloomberg Dollar Index toward the lowest level in seven months.
EUR/USD jumped by more than 200 pips on Wednesday touching $1.3540 (highest level since January) and closing at $1.3520. The pair is trading around $1.3530 as of writing. Prospects of the pair have significantly improved since yesterday. There are no data releases in euro zone scheduled for today, so the market will likely keep digesting the FOMC-caused shock. GBP/USD rocketed to $1.6162 yesterday (highest since January). Today the cable is trading under slight pressure around $1.6130. Watch the UK retail sales at 8:30 GMT.
USD/JPY is trading by about 40 pips up in the 98.30 area after it lost more than 100 pips yesterday. Yen declined today as Japan had a trade deficit for a 14th month. USD/CHF is little changed at 0.9120 after it dropped by 140 pips yesterday. The Swiss National Bank announced its interest rate decision at 07:30 GMT.
AUD/USD is trading right below $0.9500. Aussie’s correcting a bit after it rose gained about 65 pips yesterday and rose to $0.9528. NZD/USD is rising for the third day in a row. The pair has reached the highest levels since early May above $0.8400. New Zealand’s GDP added 0.2% in Q2, in line with expectations. USD/CAD dropped to 1.0215. The downside was limited by the 200-day MA. Canada will release wholesale sales figures at 12:30 GMT.