Forex News

12-12-19 Daily Forex Technical Research Report


USD/JPY holds modestly changed to 108.55 as Asian traders enter for Thursday’s session. Markets recently responded to the Federal OpenMarket Committee’s (FOMC) dovish stunt by broad US dollar (USD) weakness.

The Fed policymakers held their Gross Domestic Product (GDP) and Inflation targets unchanged while expecting no rate change in 2020. Evenso, Chairman Jerome Powell’s speech escalated the risk-off moves as the comments indicate a cautious draw from the presently easy moneypolicy with eyes on inflation recovery.

The United States (US) keeps on repeating that the trade talks with China are going well. However, China has a different opinion and asks forthe cancellation of December 15 tariffs to carry on the discussions, as per the CNBC. Also, the recently released Global Times from Chinarepeats the fashion of criticizing the US while saying, “US President Donald Trump can’t force China to yield on trade like Mexico.”

Given the lack of clarity concerning the phase-one, the US might go ahead with its planned December 15 tariffs on China. The same willreactivate trade war and could challenges the global economy again.

That said, the US 10-year treasury yields seesaw near the weekly low around 1.79% while the S&P 500 Futures seems to trim the post-Fedgains by the press time.
Moving on, Japan’s October month Machinery Orders, expected 0.9% versus -2.9% prior MoM, can entertain short-term traders amid eyes ontrade headlines. Also affecting the pair moves will be the election in the United Kingdom (UK). The British election will pave the way for Brexitproceedings. The latest polls signal a hung parliament and further challenges to the likely re-elected present Prime Minister Boris Johnson.