Sterling and Aussie are best performers

September 4, 2013

The main themes challenging currency markets are the major central bank policy meetings tomorrow y the European Central Bank, Bank of England and Bank of Japan. This should drive volatility higher by tomorrow.

Euro is flat leading into this ECB meeting, with many expecting a dovish tone by ECB Chief Mario Draghi and rates are expected to remain on hold at 0.50 percent.

The pound rallied after strong UK Services PMIs, however the Bank of England policy meeting tomorrow is key risk. If the bank reiterates its dovish stance this is likely to weigh on sterling. However the key interest rate is unchanged at 0.50 percent  and the asset purchase program on hold at £375bn.

GBPUSD is up 0.5 going into the US session on the back of the stronger than expected services PMI (which rose to 60.5 in August). 

Yen is generally weak leading into the Bank of Japan meeting. The BOJ is unlikely to shift policy too much but investors are being cautious nevertheless.

USDJPY has so far failed to break above key resistance at 100.0 yen, just touching 99.79 in early European trading before easing back down to 99.45 yen.

In the longer term, market expectations of diverging monetary policy between the US and Japan should push USDJPY well above 100.

The Aussie extends gains today, and is up 2 percent after better than expected GDP data as well as a recent uptick in China data to support it. China is a major export destination for Australian goods. AUDUSD rallied to a high of $0.9169, the highest since august 19. 

Publication source
FxNet information  FxNet reviews

October 21, 2016
EUR/USD remained unchanged after the ECB
The price maintained its bearish tone on Thursday. The EUR/USD pair stayed around its recent lows during the day. The euro slightly strengthened towards 1.1000 ahead of the US opening. The 50-EMA limited the euro recovery in the 1 hour chart...
October 21, 2016
Decisions on QE Postponed until December
Asian stock markets are narrowly mixed, with Japanese bourses managing marginal gains as the Yen falls against the Dollar. Stock futures in the U.S. are down...
October 21, 2016
EURUSD at $1.09, but declines could be limited
The ECB monetary policy meeting yesterday saw the euro give up its intraday gains to close on a bearish note. As Draghi signaled that the central bank would need time to assess the monetary policy situation...

XM Rating
FxPro Rating
FXTM Rating
Grand Capital Rating
Vantage FX Rating
FXCM Rating

24option Rating
IQ Option Rating
365BinaryOption Rating
EZTrader Rating
Banc De Binary Rating
Anyoption Rating