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Sunday, June 21, 2015

FOMC To Determine Near-Term USD Direction

Even if Greek tantrum failed to heal Euro-region during its last proclaimed deadline and US consumer details, namely the Retail Sales and Consumer Sentiment, printed better than expected numbers, early week losses by the greenback forced the US Dollar Index (I.USDX) to register consecutive second weekly decline. Japanese Yen signed its victory as uncertainty over the Grexit, coupled with this week's FOMC, continue supporting safe haven demand while the GBP registered considerable gains supported by improved economic details. Moreover, AUD flashed mixed gains due to counter-moves between weaker details from China and strong employment numbers at home signaling lack of clarity and the NZD kept running into losses as RBNZ unexpectedly cut its benchmark interest rate and favored loose monetary policy. With the major central bankers, namely Federal Reserve, Bank of Japan and Swiss National Bank, scheduled to hold their monetary policy meeting during the current week, Forex market is likely to witness wild moves adjacent to announcements. Moreover, Testimony by the ECB President, Inflation numbers from UK and US, coupled with US housing market details and manufacturing signals, also, the UK labor market results, can continue offering liquid trading sessions.