Currency Analyst since 2010

Sep. 20: Asian session

USD held above a 7-month low against a basket of currencies on Friday after investors unwound some of the bearish trades put on in reaction to the Federal Reserve’s shock decision to maintain its massive bond-buying stimulus. Watch US political scene (budget discussion) and speeches by Fed’s board members (16:30-16:55 GMT), though nothing concrete is likely to be resolved or said.

EUR/USD is little changed on the $1.3530 area. The European Commission will release today an index of the euro zone’s household confidence. According to the forecasts, the indicator rose from minus 15.6 in the previous month to minus 14.5 in September – the highest level since July 2011. GBP/USD got support at $1.6022 after its correction down on Thursday. Britain will release public sector net borrowing at 08:30 GMT – analysts expect a GBP-negative release.

USD/JPY is trading a bit on the downside after it reached 99.62 yesterday. The Bank of Japan Governor Haruhiko Kuroda said today that policy makers will continue to take appropriate action in conducting monetary policy. EUR/JPY declined a bit from an almost 4-year high before ECB President Mario Draghi speaks next week.  USD/CHF is trading just above 0.9100.

AUD/USD rose a bit from support at $0.9427 after declining from $0.9524 yesterday. NZD/USD rose to $0.8390, though it’s still below yesterday’s high at $0.8435. USD/CAD recovered to 1.0285. Canada will publish inflation data at 12:30 GMT.

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