Dovish Fed Favours Aussie And Kiwi
Matt Simpson | Jun 19, 2014 01:43AM ET
A snapshot view of yesterday’s New York - London session with technical notes...
No real surprises from the FED - Concerns with rate growth, Labour market has improved with lower unemployment and it has been retreated there is a lot of uncertainty out there in a 'steady as she goes' approach. Rate is likely to remain near zero for a considerable amount of time and Tapering continues as planned at 10bn.
Yellen stated in the press conference the FED "has no target to what volatility should be" as VIX reached a new multi-year low as Stocks print fresh new highs.
The Aussie and Kiwi expected to benefit from Yellen’s' Dovish comments.
CAD Wholesale Sales m/m above expectations and a 6-month high at 1.2% vs 0.3% expected. The USD/CAD back at 4-week lows with a near-term bearish tone. Overall bias remains bullish above 1.08
UK MPC keep Official Bank rate at 0.5% and Asset Purchase stable after a unanimous vote, although many suspect a few key committee members will begin to sway towards rate rises over the coming months.
US Equities back to new highs with European Indices (FTSE, DAX and CAC) all fomring swing lows and looking to follow the US and break to new highs soon.
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