Markets Snapshot
Dollar Mildly Lower after Weak CPI, FOMC Awaited Dollar drops mildly in early US session after weaker than expected inflation data. But loss is so far limited as markets await FOMC policy decision. Headline CPI slowed to 1.7% yoy in August versus expectation of 1.9% Yoy. Core CPI also slowed to 1.7% yoy, versus expectation o 1.9% yoy. Later today, FOMC is expected to reduce a further USD 10b in the QE program, leaving a final USD 15b which will be removed at the October meeting. We expect to see the statement modified to signal clearly that the QE would end in October. The biggest question is whether FOMC would change the language in the accompanying statement to reflect that rate hike is nearing. To be specific, Fed noted that rates would stay near zero for a "considerable time" after QE ends. And markets are wondering if Fed would drop "considerable time" and vote pattern for such change or not. Fed will also release updated economic projections. There could be upward revision in GDP forecast and downward revision in unemployment rate. Full Report Here...
Featured Technical Report
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.6186; (P) 1.6249; (R1) 1.6336; More... GBP/USD rises to as high as 1.6350 so far today as the recovery from 1.6051 continues. Outlook remains unchanged though as such recovery is viewed as a correction only. While further rise cannot be ruled out, we'd expect upside to be limited by 1.6534 support turned resistance and bring fall resumption. Below 1.6161 minor support will turn bias back to the downside for 1.6051 first. Break will extend the decline from 1.7190 through 50% retracement of 1.4813 to 1.7190 at 1.6002 to 61.8% retracement at 1.5721. Read more...

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GMT Ccy Events Actual Consensus Previous Revised 22:45 NZD Current Account Balance Q2 -1.07B -1.04B 1.41B 1.47B 00:30 AUD Westpac Leading Index M/M Aug -0.10% -0.10% 08:30 GBP BoE Minutes 08:30 GBP BoE Official Bank Rate Votes 2--0--7 2--0--7 2--0--7 08:30 GBP BoE Asset Purachse Facility Votes 0--0--9 0--0--9 0--0--9 08:30 GBP Jobless Claims Change Aug -37.2K -29.7K -33.6K -37.4K 08:30 GBP Claimant Count Rate Aug 2.90% 3.00% 08:30 GBP ILO Unemployment Rate (3M) Jul 6.20% 6.30% 6.40% 09:00 CHF ZEW (Expectations) Sep -7.7 2.5 09:00 EUR Eurozone CPI M/M Aug 0.10% 0.10% -0.70% 09:00 EUR Eurozone CPI Y/Y Aug F 0.40% 0.30% 0.30% 09:00 EUR Eurozone CPI - Core Y/Y Aug F 0.90% 0.90% 0.90% 12:30 USD CPI M/M Aug -0.20% 0.00% 0.10% 12:30 USD CPI Y/Y Aug 1.70% 1.90% 2.00% 12:30 USD CPI Core M/M Aug 0.00% 0.20% 0.10% 12:30 USD CPI Core Y/Y Aug 1.70% 1.90% 1.90% 12:30 USD Current Account Balance Q2 -99.5B -$115.0B -$111.2B -102.1B 14:00 USD NAHB Housing Market Index Sep 59 56 55 14:30 USD Crude Oil Inventories -1.0M 18:00 USD FOMC Rate Decision 0.25% 0.25%
Orders and Options Watch
US Session: Orders and Options Watch EUR: The single currency remained confined in narrow range, offers at 1.2960 were filled but sell orders are still seen at 1.2975-85 and 1.3000, more offers are noted at 1.3025 (stops above), 1.3035 and 1.3050-60, selling interest is expected at 1.3085, 1.3100-10 and 1.3035. On the downside, bids remain at 1.2920-25 and 1.2900-10, buy orders are still seen at 1.2885-95 and 1.2850-60 (stops below), buying interest is tipped at 1.2825, 1.2800 and 1.2785, fresh demand is expected at 1.2750 and 1.2725, mixture of bids and stops is located at 1.2700. Read more...
Forex Trade Ideas
Trade Idea Update: USD/CHF - Buy at 0.9290 Although the greenback has rebounded again after yesterday's brief fall to 0.9300 and gain to 0.9360 cannot be ruled out, break of 0.9373-80 is needed to signal recent upmove has resumed for a retest of last week's high at 0.9396, above there would extend headway to 0.9417 (61.8% projection of 0.9126-0.9336 measuring from 0.9287 and 50% projection of 0.9176-0.9380 measuring from 0.9315) but loss of upward momentum should limit upside to 0.9440-50 Read more... Trade Idea Update: EUR/USD - Sell at 1.3010 Although the single currency retreated after yesterday's brief rise to 1.2995, near term upside risk remains for the erratic rise from 1.2859 to bring retracement of recent decline to 1.3000-10 (50% Fibonacci retracement of 1.3160-1.2859) before prospect of another retreat, below 1.2920-25 would bring test of 1.2909 but a sustained breach below latter level is needed to signal the rebound from 1.2859 has ended and bring further weakness to 1.2880-85, then retest of 1.2859

Eurozone M3 money supply annual growth +0.8% vs +1.1% exp

More from the orderboard 28 May   By Mike Paterson on May 28, 2014 04:42 am Ryan off again today so forgive me if I don't get chance to chat in the comments as much as I/you would like/need USDCHF currently 0.8976 looking well supported still but approaching good resistance/offers so we'll see what happens Sellers 0.8985 0.9000 (stops above) 0.9025 0.9040-50 Buyers 0.8960 0.8945 0.8935 0.8925 0.8900 0.8885 EURCHF currently 1.2227 ditto the above[DEL: :DEL] Sellers 1.2235-40 1.2250 1.2265 1.2280 (stops above) Buyers 1.2215 1.2200 1.2185-75 1.2165 1.2150-40 USDCAD currently 1.0856 and still supported by corporate bids from 1.0835 Sellers 1.0875 1.0900-10 1.0925-30 1.0945 1.0975-85 Buyers 1.0835 1.0810-0800 1.0785 NZDUSD currently 0.84[DEL: 98 :DEL] 95 and still on the back foot after poor data and solid AUDNZD buying. 20th March 0.8502 lows and 0.8500 bids now breached Sellers 0.8525 0.8550 0.8585 0.8600-10 Buyers 0.8475 0.8460 0.8440 Eurozone M3 money supply annual growth +0.8% vs +1.1% exp   By Mike Paterson on May 28, 2014 04:03 am * +1.0% prev revised down from +1.1% * prvt loans -1.8% vs -2.1% exp vs -2.2% prev * M3 3-month moving average 1.0% vs 1.1% prev revised down from +1.2% Bank lending still contracting overall Euro still stuck at 1.3620, 0.8123 and 138.70 on the data. Talk of good size EURUSD barrier at 1.3600 providing some bids German unemployment change May sa +24k vs -15k exp   By Mike Paterson on May 28, 2014 03:55 am * unemployment total nsa 2.882 mln vs 2.8 exp vs 2.9 mn prev * sa 2.905 mln vs 2.881 mln prev revised up from 2.872 mln * unemployment rate 6.7% as exp/prev Euro a tad lower on the weaker than expected data * West German unemployment rose by 16,018 * East German unemployment rose by 7,919 http://www.forexlive.com/wp-content/uploads/2014/05/German-unemployment-change.jpg German unemployment change EURJPY orders 28 May   By Mike Paterson on May 28, 2014 03:50 am Currently 138.73 near session lows and right on decent bids Sellers 139.00 139.15 139.35-40 139.50 140.00 Buyers 138.70 138.50 138.00 137.85 137.50 China's MOF says it will speed up budget spending to support economic growth   By Mike Paterson on May 28, 2014 03:16 am The Ministry of Finance said it will speed up budget spending to support economic growth. In a statement, the finance ministry said downside pressure on the economy remains and the difficulties shouldn't be underestimated. It said the process of fiscal spending is relatively slow and much funding remains unspent. The Finance Ministry urged all its local branches to speed up the approval, transfer and spending of budget funds to boost growth and adjust the economy's structure. MNI reporting BOJ reports FY2013 operating profit of JPY 1.28 trillion   By Mike Paterson on May 28, 2014 03:14 am * net income JPY 724.5 bln * BOJ transfers JPY 574.94 bln to govt * transfers JPY 144.8 bln to legal reserve, 20% of net income * BOJ capital ratio 7.74% BOJ out with its 2013 statement EURGBP orders 28 May   By Mike Paterson on May 28, 2014 03:00 am Currently 0.8123 on the rise again as traders anticipate the usual month-end buying. Offers now exhausted between 0.8115-20 but more on the horizon which may well coincide with the strong cable support at 1.6770-75 that I've just highlighted Sellers [DEL: 0.8115-20 :DEL] 0.8125 0.8135 0.8150 0.8160 Buyers 0.8100 0.8080-85 0.8070 0.8050 0.8035 0.8000 French producer prices April -0.1% vs -0.4% prev   By Mike Paterson on May 28, 2014 02:45 am French consumer spending April mm -0.3% vs +0.3% exp vs +0.6% prev revised up from +0.4% EURUSD a tad lower at 1.3627 Trading Ideas – European session 28 May   By Mike Paterson on May 28, 2014 02:37 am Ok good people, it's time for the community singalong again It's Wednesday and I feel a scrappy day ahead as we start to lead into some month-end flows How about you ? What's on your own orderboards ? IFRAME: [1]http://www.youtube.com/embed/8DGvJSuoI3A?feature=oembed References 1. http://www.youtube.com/embed/8DGvJSuoI3A?feature=oembed

Dollar rallies against the Japanese yen

Action Insight Market Overview	Markets Snapshot
Dollar Surges Against Yen Despite ISM Manufacturing Miss Dollar rallies against the Japanese yen in early US session even though ISM manufacturing index missed expectations. Though, the greenback is steady elsewhere as the movement is mainly triggered by yen's own weakness. US equities open higher with S&P 500 now heading back to its historical high. The ISM manufacturing index rose to 53.7 in March but was below consensus of 54.0. Improvements were seen in production and new orders. However, it should be noted that the employment component dropped to 51.1, down from 52.3, which is a negative factor for Friday's NFP. Also released in US session, US construction spending rose 0.1% mom in February. Canadian IPPI rose 1.0% mom in February while RMPI rose 5.7% mom. Full Report Here...
Featured Technical Report
USD/JPY Mid-Day Outlook Daily Pivots: (S1) 102.86; (P) 103.15; (R1) 103.50; More... The rebound from 101.20 is still in progress and could extend higher. As note before, price actions from 105.41 are viewed as a correction pattern, with those from 100.75 as the second leg. Current development argues that such second leg isn't completed yet. Further rise could be seen above 103.75. But in that case, we'd expect strong resistance below 105.41 to limit upside and start the third leg. Meanwhile, below 102.68 minor support will turn bias back to the downside for 101.20 and then 100.75 low. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

Economic Indicators Update
GMT Ccy Events Actual Consensus Previous Revised 23:50 JPY Tankan Large Manufacturers Index Q1 17 19 16 23:50 JPY Tankan Non-Manufacturing Index Q1 24 25 20 01:00 CNY Manufacturing PMI Mar 50.3 50.1 50.2 01:45 CNY HSBC/Manufacturing PMI Mar F 48 48.5 48.5 03:30 AUD RBA Rate Decision 2.50% 2.50% 2.50% 07:30 CHF SVME-PMI Mar 54.4 56.7 57.6 07:45 EUR Italian Manufacturing PMI Mar 52.4 52.2 52.3 07:55 EUR German Unemployment Change Mar -12K -10K -14K -15K 07:55 EUR German Unemployment Rate Mar 6.70% 6.80% 6.80% 6.70% 08:00 EUR Eurozone Manufacturing PMI Mar F 53 53 53 08:00 EUR Italian Unemployment Rate Feb P 13.00% 12.90% 12.90% 08:30 GBP PMI Manufacturing Mar 55.3 56.5 56.9 56.2 09:00 EUR Eurozone Unemployment Rate Feb 11.90% 12.00% 12.00% 11.90% 12:30 CAD Industrial Product Price M/M Feb 1.00% 0.70% 1.40% 12:30 CAD Raw Materials Price Index M/M Feb 5.70% 2.30% 2.60% 2.80% 14:00 USD ISM Manufacturing Mar 53.7 54 53.2 14:00 USD ISM Prices Paid Mar 59 59 60 14:00 USD Construction Spending M/M Feb 0.10% 0.10% 0.10%
Orders and Options Watch
US Session: Orders and Options Watch EUR: The single currency continued to move higher and offers at 1.3810 were filled but sell orders are still noted from 1.3820 up to 1.3850 (stops above latter level), mixtures of offers and stops are located at 1.3870 and 1.3900. On the downside, bids are raised to 1.3785, 1.3750-65 and in good size at 1.3725-35, more buy orders are reported at 1.3695-10, buying interest is tipped at 1.3660-70 with bigger stops placed below 1.3650. Read more...
Forex Trade Ideas
Trade Idea Update: USD/JPY - Buy at 102.70 Although the greenback has rebounded again, break of yesterday's high of 103.44 is needed to signal recent rise from 101.21 has resumed and extend gain towards previous resistance at 103.76, having said that, as broad outlook remains consolidative, upside should be limited and price should falter below 104.00. If said resistance continues to hold, then further consolidation is in store and another corrective fall to 102.80 cannot be ruled out Read more... Trade Idea Update: GBP/USD - Buy at 1.6600 As the British pound has retreated after holding below yesterday's high of 1.6684, suggesting minor consolidation would bee seen but downside should be limited to 1.6597-00 and bring another rise, above said resistance would extend the rise from 1.6460 to 1.6700 and possibly test of resistance at 1.6718, however, loss of upward momentum should prevent sharp move beyond latter level