FX Market Wrap: Markets slow and investors digest the Fed

The Greenback found consolidation through the day’s trade, as many stood on the side-lines today following the Fed’s hawkish rhetoric. The DXY continues to trade in a tight range, the fashion has been evident across the majority of FX pairs. with lack of direction coming alongside the Jewish New Year Holiday.

Politics is the theme this week, with elections expected in Germany and New Zealand over the weekend and much focus on PM May’s Brexit talk in Florence.

GBP & EUR

GBP trade has been slow, with anticipation on UK PM May’s Brexit speech, likely due in the early afternoon tomorrow. A primer for this event is available on the RANsquawk headline feed Titled: “PRIMER: UK PM Theresa May to deliver Brexit speech on 22 Sep 2017”

EUR/USD is a pair that has managed to gain some ground back against the dollar, as bids were found around September 5th low, but does remain firmly in the 1.1860 – 1.2050 level.

AUD

AUD has struggled; not helped by outperformance in its major pairs, with the rampant greenback yesterday, alongside more positive polling results for the NZ national party, supporting the Kiwi. AUD saw initial weakness from Lowe’s comments, noticeably commenting on the clear risks in the Australian economy. Further news impacted AUD later in the session, with a key export partner, in China, being downgraded by S&P, possibly affecting future trade.

AUD/NZD trades just around previous resistance seen in July, looking for a break into this range once again.

JPY & CHF

The safe haven currencies have continued to lose ground through trade, with the exception of USD/JPY, coming back off key resistance around 112.70 / 112.80, where many had touted profit taking levels for some long positions.   

21 Sep 2017 - 15:39- Fixed Income- Source: RANsquawk

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