ForexPros Daily News October 13, 2010
Forex – USD/JPY edges higher as Fed signals move towards easing
Forex Pros – The U.S. dollar edged higher against the yen on Wednesday, after minutes of the most recent meeting of Federal Reserve policy makers indicated that many believe fresh economic stimulus measures could become necessary.
USD/JPY hit 82.00 during European morning trade, a daily high; the pair subsequently consolidated at 81.89, gaining 0.21%.
The pair was likely to find support at 81.37, the low of October 11 and a 15-year low and resistance at 83.02, the high of October 7.
On Tuesday, the minutes revealed of the September 21 meeting of Federal Open Market Committee revealed that while officials thought it unlikely the U.S. economy would fall into recession again, several were concerned that growth would not be strong enough to reduce unemployment for some time.
“Several members noted that unless the pace of economic recovery strengthened or underlying inflation moved back toward a level consistent with the [Fed’s] mandate, they would consider it appropriate to take action soon,” the minutes said.
The yen was also down against the euro, with EUR/JPY gaining 0.69% to hit 114.59.
Earlier in the day, official data showed that Japanese core machinery orders jumped unexpectedly in August.
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Forex – GBP/USD hits daily high amid stronger Fed easing prospects
Forex Pros – The pound was up against the U.S. dollar on Wednesday, rising to a daily high, after minutes of the most recent meeting of Federal Reserve policy makers revealed that many believed fresh economic stimulus would be necessary.
GBP/USD hit 1.5869 during early European trade, a daily high; the pair subsequently consolidated at 1.5852, gaining 0.27%.
Cable was likely to find support at 1.5753, Tuesday’s low and resistance at 1.6017, the high of October 7.
“Several members noted that unless the pace of economic recovery strengthened or underlying inflation moved back toward a level consistent with the [Fed’s] mandate, they would consider it appropriate to take action soon,” the minutes said.
Officials thought it unlikely the U.S. economy would fall into recession again, but several were concerned that growth would not be strong enough to reduce unemployment for some time.
Meanwhile, the pound was down against the euro, with EUR/GBP gaining 0.02% to hit 0.8811.
Later in the day, the U.K. was to publish official data on claimant count change and the country’s unemployment rate.
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