Currency Call Mid-Day Update (17 June 2021)

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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.


Watch the full session of the Currency Call here:

Join the Daily Currency Call from Mondays to Fridays at 1100 (GMT+8).


Edited 17 Jun 2021, 18:56

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