EUR, CHF and JPY bullish; GBP and AUD bearish
The FOMC had centre stage last night and their slightly dovish twist has had a mixed effect on the markets. The USD is really pretty much unchanged from yesterday and we are seeing most of the action in the crosses. The ‘defensive’ trades are doing well with EUR, CHF and JPY all slightly higher whilst the traditional ‘risky’ trades like the GBP and the AUD are lower. I’m sure you can make your own sense out of this; but basically the EUR/AUD recovery toward more neutral long-term levels continues unabated and GBP/JPY profit taking from macro accounts has ramped up a notch or three.
USD/JPY support at 97.60 has held firm yet again and that will be the main level to watch in today’s trade. Keep an eye on AUD/NZD as well, with profit takers aplenty reported below 1.1200.