1 May 2014
US Session recap: A normalisation in markets as Fed looks forward
FXStreet (Guatemala) - The US session was dominated by the Q1 GDP results for the US and the Fed/FOMC statements.
It went something like: A small rise in Q1 of just 0.1%, far worse than expected, but never mind that, the Fed tapered anyway by $10B and noted that activity had picked up recently. US yields dropped off while stock markets rallied, USD/JPY reclaimed the 102 handle and the EUR is held up on a robust dollar. The dollar was also supported on the ADP and Chicago PMI results coming in positive and supportive of a decent Nonfarm Payroll result on Friday.
EUR/USD has been well bid on the back of the inflation data in the EZ rising in April vs March and markets took that as a relief for the ECB. The single currency has remained on the 1.38 handle and in fact looked comfortable throughout the session above 1.3860.
GBP/USD was the main event and climbing to yearly highs on 1.69 handle but settling more so in 1.6870/80’s regions. Statements from Dale were damaging with warnings around the housing sector in the UK which came ahead of the Fed today.
USD/JPY managed to reclaim the 102 handle after a dip below to supporting levels in the 101.90’s and consolidated comfortably upon the handle to be handed over to Asia around 102.20.
Main headlines:
BOE's spokesman Dale warns of problems with UK housing market
US GDP rises only 0.1% in Q1, much weaker than consensus
FOMC tapers bond buying program by $10 bln to $45 bln per month
ADP employment result positive
Chicago PMI rises
It went something like: A small rise in Q1 of just 0.1%, far worse than expected, but never mind that, the Fed tapered anyway by $10B and noted that activity had picked up recently. US yields dropped off while stock markets rallied, USD/JPY reclaimed the 102 handle and the EUR is held up on a robust dollar. The dollar was also supported on the ADP and Chicago PMI results coming in positive and supportive of a decent Nonfarm Payroll result on Friday.
EUR/USD has been well bid on the back of the inflation data in the EZ rising in April vs March and markets took that as a relief for the ECB. The single currency has remained on the 1.38 handle and in fact looked comfortable throughout the session above 1.3860.
GBP/USD was the main event and climbing to yearly highs on 1.69 handle but settling more so in 1.6870/80’s regions. Statements from Dale were damaging with warnings around the housing sector in the UK which came ahead of the Fed today.
USD/JPY managed to reclaim the 102 handle after a dip below to supporting levels in the 101.90’s and consolidated comfortably upon the handle to be handed over to Asia around 102.20.
Main headlines:
BOE's spokesman Dale warns of problems with UK housing market
US GDP rises only 0.1% in Q1, much weaker than consensus
FOMC tapers bond buying program by $10 bln to $45 bln per month
ADP employment result positive
Chicago PMI rises