Currency snapshot (major pairs)

Dollar index trading at 97.29 (-0.18%)

Strength meter (today so far) – Euro +0.23%, Franc +0.10%, Yen -0.31%, GBP +0.10%

Strength meter (since last week) – Euro -0.18%, Franc -0.55%, Yen -0.91%, GBP +0.28%

EUR/USD –

Trading at 1.117

Trend meter –

• Long term – Sell, Medium term – Buy, Short term – Range/ Buy

Support          

• Long term – 1.07, Medium term – 1.09, Short term – 1.10

Resistance –

• Long term – 1.16, Medium term – 1.14, Short term – 1.14

Economic release today –

• Consumer price index is up 1.4 percent y/y.
• Core CPI is up 1 percent y/y.

Commentary –

• The euro is down as the dollar is up on hawkish FOMC.

GBP/USD –

Trading at 1.277

Trend meter –

• Long term – Sell, Medium term – Buy, Short term – Buy

Support –

• Long term – 1.16, Medium term – 1.23, Short term – 1.27

Resistance –

• Long term – 1.32, Medium term – 1.305, Short term – 1.305

Economic release today –

• NIL.

Commentary –

• The pound remains upbeat as BoE announced rates on hold but with three dissenters looking for hikes.  We expect the pound to reach parity in the longer run.

USD/JPY –           

Trading at 111.3

Trend meter –

• Long term – Sell, Medium term – sell, Short term – Range

Support –

• Long term – 107, Medium term – 109, Short term – 109

Resistance –

• Long term – 119, Medium term – 115, Short term – 113

Economic release today –

• BoJ kept monetary policy unchanged at today’s meeting.

Commentary –

• The yen weakened as the investors turned the focus on monetary policy divergence between Fed and BoJ.

USD/CHF –                         

Trading at 0.974

Trend meter –

• Long term – Buy, Medium term – Range/Buy, Short term – Range

Support –

• Long term – 0.92, Medium term – 0.95, Short term – 0.95

Resistance –

• Long term – 1.04, Medium term – 1.01, Short term – 0.98

Economic release today –

• NIL

Commentary –

• Franc is a much worse performer than the euro this week.