Forex - EUR/USD, USD/JPY Flows: Dovish take on Fed but no massive USD sell-off


 06:49 (GMT) 12 Oct

  [Forex Flows]

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EUR/USD, USD/JPY Flows: Dovish take on Fed but no massive USD sell-off (0100-TJSR-C01)

The market's mildly dovish take on eh FOMC minutes does see the USD generally a shade lower this morning, although USD/JPY is again proving reluctant to test lower levels as equity markets signal risk appetite very much intact. We probably need to see US CPI tomorrow to give the next steer, and while there are central bankers aplenty due today as they gather in Washington for the annual IMF and World Bank get together, what we really need is for a change of feathers from their allotted slots on the dove-hawk scale. That's something we did not get from the Fed's Evans and George either side of the Minutes. Looking at the technicals 1.1900 is a rather neat next resistance for EUR/USD, 1.1937 beyond that, although both fairly minor in the wider scheme of things; the 1.2004 high from 22nd September probably carries more weight, but involves some quite major expense for the recent sellers. The recent range trade on USD/JPY has put a minor support level in at 111.99, but we expect the longs will hang in at last through 111.45/50.


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