Currency Call Mid-Day Update (17 June 2021)
Currency Call Mid-Day Update (17 June 2021)
During today’s Currency Call, Gim Hong highlighted the following points:
- In the interest rate statement, the Fed acknowledged the progress of the vaccination programmes carried out in the U.S., expressing optimism in the country’s economic recovery.
- In the projection materials, the central bank revised their economic projections optimistically.
- The dot plot indicates that more committee members are expecting rate hike to take place in 2023 as compared to the previous projection.
- Fed Chairman Powell implied during the press conference that some discussions on quantitative easing tapering among the committee members were made during the meeting.
Scott highlighted the following points:
- U.S. dollar index strengthened on the hawkish FOMC and is currently trading at the 91.29 level.
- The U.S. initial jobless claims data that will be released later at 2030 (GMT+8) is expected to show a decline in the number of people claiming for unemployment benefits. This may actually further strengthen the U.S. dollar.
- If the daily candle of the dollar index closes above the 91.29, look for buying opportunities.
Daniel highlighted the following points:
- The Bank of Japan monetary policy decision announcement tomorrow is unlikely going to give any surprises like the Fed as Japan is still fighting the COVID war.
- Look for buying opportunities of USD/JPY if it breaks above the resistance level of 110.800.
- Look for buying opportunities of EUR/JPY if it moves beyond 132.900.
- Stay out of GBP/JPY for now.
- Gold is likely going to be ranging across for now.
During the day, USD/JPY and GBP/JPY were moving without a clear direction while EUR/JPY weakened.
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Edited 17 Jun 2021, 18:56
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