Range Markets

JPY is the top G10 FX gainer today while NZD and SEK are the top losers down -0.51% and -0.65% vs the dollar. The USD rose post-FOMC as the statement was shortened and upbeat on the economy. Elsewhere, the BoJ bought 10-year bonds to push yields lower from 14.5 bp to 11.9bp showing their intent to keep yields low; in our view, USDJPY dips are likely to be short-lived with support around 111.27. In the equities space today, the Asian markets traded weak with the Nikkei 225 closing lower -1.03% at 22,512, Kospi ending -1.60% at 2,270 and Hang Seng falling -2.21% to 28,7714. The European equity indices have had a similar story with FTSE 100 down -0.85%, DAX down -1.65%, and CAC up -0.62%. In the rates market, global yields were trading mixed. The US 10-year yield was trading at 2.997% and the Bund 10-year yield trading at 0.474%. In the energy space, the Brent (front month) is trading weaker for the day at $72.46; next support at $70.94, resistance at $75.50. In terms of data, the main focus remains BoE rates decision; GBPUSD is likely to move between 1.3040-1.3200 range ahead of the meeting where a 25bp rate hike is around 90% priced in. That said, we still see GBP risk skewed to the upside and the only dovish scenario is no rate hike.


10-Year Yields Daily chart (6-month)



USD-Index Daily chart (2-month)



Brent Front Month Daily chart (6-month)



Trade weighted basket Hourly (one-week)




Major Currency Pairs


EURUSD Chart (Two-week)



Strategy: Support at 1.1593 for 1.1672
Short-term view: EUR/USD has support at 1.1593 and MACD is looking to bottom, hence, we see a bounce to 1.1672. A break below 1.1593 to open 1.1559 



GBPUSD Chart (Two-week)



Strategy: upport at 1.3043 for 1.3157
Short-term view: GBP/USD has support at 1.3043 and MACD is looking to bottom from just around the zero line. Hence, we se a bounce to 1.3157. Below 1.3043 to open 1.2976.



USDJPY Chart (Two-week)



Strategy: Support at 111.27 for 112.10
Short-term view: USD/JPY has support at 111.27 and MACD is still constructive. Hence, we see a bounce to 112.10. A break below 111.27 to open 110.97.



AUDUSD Chart (Two-week)



Strategy: Support at .7362 for .7440
Short-term view: AUD/USD has support at .7362 and MACD is looking to bottom. Hence we see a bounce to .7440. Below .7362 to open .7334.



BTCUSD 1-Hour Chart (Two-Weeks)



(Chart by Reuters)


Strategy: Support at $7417 for $7901
Short-term view: BTC/USD support comes in around 7417 and MACD is looking to bottom. Hence, we are looking for a bounce to 7901. Below 7417 to open .7231.



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