USD is down across the board today
Monday, March 23, 2015 9:39 PM UTC
- EUR/USD is marching back towards 1.10 (high 1.0972), AUD/USD reached 0.7900, USD/JPY is heading back to its post-FOMC low (spot 119.70).
- RBC Capital research noted yesterday that the USD is undergoing a series of bearish weekly key reversals (EUR, GBP and CAD) and technically the picture still looks bad for USD.
- Resistance in EUR/USD is at 1.1098 (and above there at 1.1270). But we still look for the Fed to start hiking in June (well ahead of the market which is now looking for Q4) which would mean another leg up for USD still to come.
- Fed Vice Chair Fischer spoke in NY - his comments echoed previous speeches, repeating the Fed's data-dependency but emphasizing the importance of employment data (which has been strong).
- US CPI will be a focus point tonight, but the much more important data-point should be payrolls next Friday. Another strong print should spell an end to the current USD correction.
Day ahead:
- Chinese HSBC flash manuf. PMI is out this morning - we look for a modest decline from 50.7 to 50.4 (cons 50.5).
- EZ flash PMIs dominate the afternoon followed by UK CPI and US CPI
