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By Associated FX Analysis Team

Kantox currency update: euro and pound advance on Fed’s cautious stance

Published March 17, 2017

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The dollar traded lower for the second consecutive day on Thursday, still weighed by the cautious tone of the Federal Reserve on Wednesday, which disappointed investors who were expecting the Bank to accelerate the pace of its monetary tightening cycle.

The British pound advanced further after the minutes of BoE’s monetary policy meeting showed a split decision, for the first time in eight months, with Kristen Forbes in favour of a 25 bp rate hike.

EUR/USD: at 5-week highs, nears 1.0800. The euro advanced on Thursday for the second consecutive day after having bounced at 1.0600 on Wednesday, to reach 5-week highs at 1.0785, approaching key resistance levels at 1.0830 and 1.0865. At London market opening times, the EUR/USD is trading at 1.0760.

GBP/USD extends recovery and approaches 1.2400. The pound extended its recovery, fuelled by the unexpected split vote of the BoE monetary policy committee, to reach two-week highs at 1.2375. At London market opening times, the GBP/USD is trading at 1.2335.

USD/JPY consolidating at two-week lows. Dollar reversal from 115.00 area ahead of the Fed monetary meeting has been contained above 112.90, and the pair remained steady on Thursday, with upside attempts capped above 113.50. At London market opening times, the USD/JPY is trading at 113.40.

In the Calendar Today

Today we will have second-tier economic indicators.

At 13:15 GMT U.S. Industrial production is the only event worth mentioning. Industrial output is expected to have bounced up in February, after January´s decline, although the impact on the dollar is expected to be muted.

13:15 GMT       U.S: Industrial production (MoM) (Feb)
Prev: -0.3%       Cons: 0.2%     

 


 

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