TRADING TIPS :
- Forex-Dollar gains as markets shrug off Fed minutes, bet on rate hikes.
- Forex-Dollar dips as upbeat German sentiment data cools greenback’s rally.
- Forex-Dollar little changed, focus turns to Fed minutes.
EUR/USD was up 0.06% at 1.2541.Monetary authorities largely agree that the economy was improving and no longer needed stimulus tools such as asset purchases, though concerns persisted that inflation expectations may be dipping, the minutes of the Federal Reserve’s October policy meeting released Wednesday revealed. At its October monetary policy meeting, the Fed left its benchmark interest rate unchanged at 0.00-0.25% and said it was closing its monthly bond-buying program in a move widely expected by markets.While the economy is improving, some monetary authorities want to be sure recovery remains sustained before raising interest rates, which is seen taking place in 2015, with a few voting members expressing concerns that inflationary pressures remain soft.
USD/JPY was up 0.72% at 117.71, up from a session low of 116.82 and off a high of 117.78.The pair was expected to test support at 115.44, Monday’s low, and resistance at 117.78, the session high.Investors were looking ahead to the minutes of the Fed’s October meeting, which were expected to highlight the growing monetary policy divergence between the U.S. central bank and its peers in Japan and Europe. The Fed’s October policy statement noted that both the labor market and the inflation outlook were improving. Markets are currently expecting the U.S. central bank to start raising rates sometime around September 2015. In contrast, the Bank of Japan and the European Central Bank are expected to continue monetary easing in order to shore up growth and inflation.
1. Buy EUR/USD Above 1.2563-TG:1.2583/1.2613 SL 1.2533
2. Sell EUR/USD Below 1.2500-TG:1.2480/1.2450 SL 1.2530