US dollar sheds its gains against the majors, dropping below the 1.50-handle against the euro.
The US dollar could not sustain the little gains acquired on the back of the Beige book report released Tuesday. Sluggish economic activity, weak commercial real estate sector, weak consumer spending and low loan demand; all caused the US dollar to advance against the majors for a short time, only to shed all its gains later yesterday. The British pound advanced above the 1.66 level, while the euro-dollar trespassed the 1.50 handle again.
The Yen fell to two-month low against the Euro as risk appetite rises. Yen touched the 137.59 level against the euro in mid Tokyo session as demand for higher yielding assets increased.
Asian stocks advanced as large companies reported record earnings. US stocks also advanced yesterday, as optimism is still spreading amongst investors. Good expectations for 3rd quarter upcoming earnings reports continue to push equities higher.
Currency to watch out for: EURJPY & GBPUSD
- The EURJPY pivot point is at 137.00 with a preference to enter into long positions at 1.3707
- The USDCHF pivot point is at 1.6550 with a preference to enter into long positions 1.6560
Today's calendar and market movers:
- UK GDP expected to rise to 0.2%
- US Home Sales expected to rise to 5.35m units
US equities closed higher Wednesday with DJI up by 1.33%. Asian stocks were up with hang seng 1.47%.