FX Daily Report
Sterling rallied on Wednesday after Bank of England minutes showed no policymakers voted to increase its asset buying plan and that cutting the remuneration rate on bank reserve deposits was not discussed.
BoE Monetary Policy Committee members voted unanimously to keep the asset purchase program at 175 billion pounds in September, while keeping interest rates unchanged at a record low 0.5 percent, the minutes showed .
They gave no indication that the MPC had considered cutting the remuneration rate on commercial banks' deposits with the BoE -- an issue raised by BoE Governor Mervyn King last week.
Some in the market said sterling's gains on Wednesday were overdone, as the pound overall continues to suffer on perceptions the BoE will lag other central banks in ending its ultra-loose monetary policy.
The Federal Reserve on Wednesday upgraded its assessment of the U.S. economy, saying growth had returned after a deep recession, while reiterating its promise to hold interest rates very low for a long time.
The Fed also said it would slow its purchases of mortgage debt to extend that program's life until the end of March, in a move toward withdrawing the central bank's extraordinary support for the economy and markets during the contraction.
The U.S. central bank, as widely expected, held its benchmark overnight lending rates at close to zero percent.
Stock market rally fizzled on concerns the Fed was setting the stage for pulling back from its efforts to stimulate the economy.
Japan's exports fell in August for the second straight month, underscoring the view that improvements in global demand are patchy at best and will keep the country's economic recovery shaky
EUR/USD: Prefer sell moving up till 1.4740 - 1.4760. 14 days SMA (1 hour chart red line) should serve as dynamic resistance. Target 1.4620, stop loss above 1.4780
GBP/USD: Prefer sell in 1.6350 - 1.6380 area for target 1.6250. Stop loss above 1.6430.
USD/JPY: Prefer sell at current (90.80) price and moving up till 91.20. Stop loss above 91.60. Target 90.00.
USD/CHF: Prefer Buy moving down till 1.0250 for target 1.0350. Stop loss below 1.0220.
swiss pb
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Performance
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