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Forex pairs in this Article » USD/JPY (Barcelona) - The FOMC-induced rally in the greenback that started late in Wednesday's session appears to have some staying power as the DXY is up nicely right now and just about every other currency out there is down sharply.

DXY up and everything else down during the Asian session

The Asian session has seen a continuation of the directional moves that started at 19:00 GMT Wednesday – Dollar higher and just about everything else lower. This appears to be a session where the Fed news is still being digested and adjusted to by global traders. Even the other “safe harbor” currencies – the Yen and the Swiss Franc – are getting slammed (so this is not a risk-on / risk-off phenomenon). Rather, this appears to be too many people loaded up on the bearish US Dollar trade and having to reverse themselves. The trading activity in Asia is such that any data points that were released were virtually ignored as traders worked to get themselves in a strong overnight portfolio position with the appropriate long/short exposure in the key crosses.

Main headlines in Asia:

Four takeaways from Dectaper - Hilsenrath

DXY rips higher with huge bullish reversal day following TINO – Tapering In Name Only

Fed tapering to lead to a higher yielding world - Moody's

USD/JPY bulls say “checkmate” to the bears with Fed rally; 106.42 next upside Fibo target

China's credit fears on the rise
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