 Dollar strengthens further and broadly, in early US session as post FOMC rally extends. As we aruged in prior report, there were hawkish elements in Fed's projections and overall announcement should be Dollar positive. Today's rally showed that this view is shared by other participants. In particular, EUR/USD's break of 1.1723 minor support carries bearish implication and could now target 1.1525 support. USD/CHF also resumed recent rebound from 0.9541 by taking out 0.9700 after brief retreat. AUD/USD has taken out 0.7228 support already and should be heading to 0.7143 support. USD/CAD also surges through 1.3063 resistance, further affirm the case of bullish reversal. Yen is following as the second strongest. For now, EUR/JPY and GBP/JPY are seen as in consolidation only, rather than bearish near term reversal. Swiss Franc is extending this week's deep decline and is trading as the weakest one. Euro follows as the second weakest, taking over Australian Dollar's place, on Italy budget jitters. Aussie is now the third weakest one for today. In other markets, European stocks reversed earlier decline and are trading higher for now. FTSE is up 0.44%, DAX up 0.29%, CAC up 0.19%. Earlier in Asia, major indices all closed in red. Nikkei was down -0.99%, Hong Hong HSI down -0.36%, China Shanghai SSE down -0.36%, Singapore Strait Times also down -0.09%. Gold picks up downside momentum in early US session. Break of 1187.58 now could pave the way back to retest 1160.36 low. |
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