Greenback Resumes Upside on Fed Meeting Minutes Release | IFCM India
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Greenback Resumes Upside on Fed Meeting Minutes Release - 21.11.2013

The US dollar index recovered substantially after the release of the Fed meeting minutes which revealed that the Fed officials are considering to start asset tapering in the coming months given that this is warranted by economic growth and employment improvement. The US dollar index jumped from its lowest point at 80.44 to as high as 81.19, surging by 0.93%. Technically the index breached its flag trading pattern to the upside confirming theory that it is a continuation pattern. Moreover, the target price based on the flag trading pattern indicates 81.75 level.


US Dollar Index
US Dollar Index


Furthermore, the USDJPY breached to the upside a key resistance at 100.60 advancing to a more than a 4-month peak at 100.74 maintaining its bullish configuration. The Japanese Yen remains under pressure as expectations for achieving 2% inflation in Japan would delay suggesting that highly accommodative policy would remain for longer period. The Bank of Japan decided today to leave its monetary policy unchanged looking for 2% inflation.


USDJPY
USDJPY


Elsewhere, the Euro dipped suddenly from 1.3541 to 1.3430 yesterday against the US dollar on comments that the ECB is looking to a negative deposit rate, the currency pair continued its bearish wave to 1.34 due to Fed minutes release. HSBC CNY Flash Manufacturing PMI decreased to 50.4 for November disappointing estimates of 50.9 and weighing on the Australian dollar with the AUDUSD holding its downward development towards 2-month low at 92.69.


AUDUSD
AUDUSD


Looking ahead, European preliminary PMI indicators would be the main focus in the morning session while later on US Jobless Claims and Producers Price Index as well as US pre. Manufacturing PMI would be in focus.
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