The US Dollar holds steady, despite a minor setback this morning remains very much within site of the 20-day moving average of 92.28 on the US Dollar index, and is currently at 91.87. Against the JPY we see the USD making gains as the USDJPY enters its 3rd consecutive day in the green. USDJPY is currently at 111.81 at the time of writing.
We are awaiting the Fed statement on Wednesday, were the US Central bank is expected to anounce its latest rate decision. No changes are expected in the rate – but any hints re possible upcoming tightening will likely be gladly picked up. A recent surge in US treasury yields has helped the USD find support on Monday.
Today’s focus on the scehduled economic docket will likely go to the ZEW survey for economic sentiment for the month of September for both the EZ and Germany. Later this afternoon we also have US Housing starts and current account balance.
Euro holds on well across the majors this morning, with the only material losses stemming from against the GBP. EURUSD continues to flotate were it has been for most of September; currently trading at 1.1986 and the 20-DMA is at 1.1925. The British Pound is a winner across all the majors this morning, the GBP has enjoyed speculation that a rate rise may be in the cards from the BoE, hover BoE governor Mark Carney has spoke up saying that any rise would be limited and gradual.
