Caution steps in ahead of FOMC announcement; USD declines take a breather


Asia followed the negative lead from Monday’s US close, this morning. Sentiment was predominantly negative as oil prices continued to move lower and talk of rate rises is rampant ahead of an FOMC announcement later this week.

Declines for the US Dollar took a a breather and the USD was able to stage a small revound yeaterday and so far this morning as well. A rise in treasury yields helped support for the US Dollar.

EURUSD is currently at 1.2373 and was yesterday unable to pursue higher than 1.2432. We’ve also seen USDJPY correct some of Friday’s down move, throughout Monday’s session – although the correction doesn’t seem to be very long lasting and we are currently at 108.47.

In today’s economic docket we mainly find EZ economic confidence and EZ (Q4) GDP, in the US we also have Consumer Confidence for January, and late afternoon BoE Governor is expected to speak before lawmakers.

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