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  1. #1
    AceTraderFX is offline Senior Member
    Join Date
    Oct 2007

    Smile AceTraderFx Jan 28: Euro retreats ahead of Fed meeting

    Market Review - 27/01/2014 21:28GMT

    Euro retreats ahead of Fed meeting

    The single currency traded with a soft bias against the dollar on Monday as expectations for a further reduction to the Federal Reserve's stimulus program after this Wednesday's FOMC meeting continued to support demand for the dollar.

    During the day, although euro rebounded from 1.3669 in early Asia and then rose to 1.3716 in European morning due after data showed that German business confidence rose to the highest level in 2-1/2 years in January, renewed dollar's intra-day firmness pressured from there and the single currency later dropped to 1.3653 in New York morning before trading sideways.

    The German research institute Ifo said on Monday that its business climate index rose to 110.6 in January, above expectation for a reading of 110.0 and up from 109.5 in December, indicating that businesses in the euro zone's largest economy had a strong start to the year.

    Versus the Japanese yen, despite dollar's initial selloff below Friday's low at 102.00 to 101.77 on continued risk on continued risk aversion in thin trading conditions in early trading hours on Monday, lack of follow-through selling triggered broad-based short-covering and price rebounded to 102.41 at Asian open. Later, dollar climbed higher to 102.77 in European morning and then 102.93 but renewed cross-buying of yen due to risk aversion pressured price to 102.20 in New York morning.

    Cable remained under pressure ahead of Asian open on Monday and dropped to 1.6471 but expectations that the Bank of England will raise interest rates sooner than anticipated after last week's U.K. unemployment data boosted demand for the British pound and sterling rose to 1.6571 in European morning and then 1.6588 in early New York trading before easing.

    Some news over the weekend worth mentioning. Reuters reported IMF MD Christine Lagarde told the economic forum in Davos that Eurozone inflation is "way below target" and that deflation is a potential risk for the region. In response to this, ECB President Mario Draghi said ECB is ready to act if inflation went lower than forecast and reiterated that interest rates would remain low or go lower for an extended period of time.

    Data to be release on Tuesday:

    Australia NAB business confidence, France consumer confidence, Italy consumer confidence, U.K. GDP, U.S. durable goods, S&P home price and consumer confidence.

  2. #2
    mdarif is offline Junior Member
    Join Date
    Jan 2014


    good opportunity and i like it,

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