Daily FX Trading Update: Euro Bears in Play? – Sept 22, 2015

Daily FX Trading Update: Euro Bears in Play? - Sept 22, 2015
The lack of any top-tier reports from the US or other major economies spurred a mixed performance among dollar pairs in recent trading. Traders are still weighing in on the latest FOMC statement and the Fed’s decision to keep rates on hold for the time being while upgrading growth forecasts for the year. There are still no major reports out of the US economy today, with only a speech by Fed official Lockhart lined up.
The euro was still in a weak spot yesterday, with traders bearish on the shared currency ahead of the PMI releases and Governor Draghi’s speech. The euro failed to draw enough support from the Greek election results, which more or less ensured that the current bailout program will be implemented without much conflict. Only the euro zone consumer confidence index is up for release today and no change from the previous -7 reading is eyed.
The pound managed to advance against some of its forex rivals in recent sessions, when the UK Rightmove HPI indicated a 0.9% rebound. There were no other reports out of the UK yesterday but it seems that the currency is drawing support from positive BOE rhetoric. UK public sector net borrowing and CBI industrial order expectations data are due today, along with a speech by BOE member Shafik.
The franc was still paling in comparison to its forex peers, as it mostly took its cue from euro weakness. There have been no reports out of Switzerland yesterday and none are due today, which suggests that the dovish SNB rhetoric might keep weighing the Swissy down.
The yen was stuck in consolidation against the comdolls but managed to chalk up gains against the euro. Yen traders are still out on a holiday until tomorrow, which explains the sideways movement of most yen pairs.
Commodity Currencies (AUD, NZD, CAD)
The comdolls resumed their slide, as traders are projecting weak data from the Caixin manufacturing PMI release later this week. Data from New Zealand showed some improvements in visitor arrivals and credit card spending, but these weren’t enough to get rid of speculations that the RBNZ is bound to announce another rate cut within the year. In Canada, wholesale sales data showed a flat reading instead of the projected 0.3% increase. Earlier today, Australia reported a 4.7% increase in house prices for the previous quarter, highlighting the housing boom in Sydney.
To contact the reporter of the story: Samuel Rae at samuel@forexminute.com