Minutes from the March 17-18 FOMC meeting showed members remain split on the timing for the "liftoff". Several members judged economic data will likely to warrant June hike, while others anticipate initial rate hike more likely later in 2015 due to impact of US dollar and oil prices. Its worth mentioning that the meeting was developed before the latest horrid US Payroll report. But the bottom line is that a June rate hike is still possible.
FX Recap
USD/JPY: Unexpected hawkish tone from today's FOMC minutes bolstered USD. Greenback rose across the board and pushed USD/JPY above 120.00. The US dollar erased all losses against the yen and has approached again to the 120.35/45 area, that capped the upside yesterday and also last week. Above here it would be trading at the strongest level since March 20. Resistances are at 120.88, 121.18 and 121.48, while on the downside, support lies at 119.26 and 119.55 levels.
USD/CAD stronger after FOMC minutes. Buck popped after some members of the Committee voted for a rates lift-off in June, lifting USD/CAD to the mid-1.25s, or session highs. The pair is looking to consolidate the recent break above the 1.2500 handle. Currently the pair is up 0.36%, trading at 1.2551. Next resistance is at 1.2574 (high Apr.3) followed by 1.2600. On the flipside, support are seen at 1.2468 (low ), 1.2455 (low Apr.7) and finally 1.2430 (low Apr.3).
GBP/USD: Cable edges lower as June liftoff gains traction. FOMC minutes revealed a split committee in respect of a June rate hike. The hawkish tone was a surprise to a market. GBP/USD is currently trading at 1.4881 with a high of 1.4973 and a low of 1.4807. Key resistance remains at 1.5257. On the downside, 1.4700 level and also the 1.4636 March low remaining in focus.
EUR/USD weaker on FOMC minutes. The single currency remains in the negative territory so far, with EUR/USD around session lows near 1.0780. Currently the pair is trading at 1.0767, down 0.43% on the day. Support levels for the pair are at 1.0750 (low Apr.2) and 1.0700 (psychological level). On the flip side, the initial hurdle seen at 1.0909 (100-h MA) ahead of 1.0955 (high Apr.7) and finally 1.1036 (high Apr.6).
USD/CHF reaches daily highs as the dollar strengthened after Fed minutes. USD rose to a weekly high of 0.9674 versus the franc as the knee-jerk reaction. The spike was short-lived, but USD/CHF remains within its recent range as investors digest the minutes. The pair was last trading 0.12% below its opening price at 0.9645. The pair could find resistances at 0.9674 and 0.9692, while supports are seen at 0.9590 and 0.9573.
