Session recap: Dollar boosted on hawkish FOMC minutes

By FXstreet.com | August 20, 2014 AAA

FXStreet (Guatemala) - The greenback came out on top once again after a more hawkish set of FOMC minutes lifted the currency and gave investors reasons to believe that interest rates may rise sooner if the labour market evidently continues to improve.

USD/JPY looks set to take on yet another new handle as we shoot up to test the 103.80 territory, a key level that the pair still manages to keep under fire post the greenbacks advances across the board. A double edge sword here with investors becoming jittery around whether the BoJ will indeed add further stimulus to the economy. Resistance is sighted 104.10 and then 104.45, although overbought territory here may leave us in a consolidation phase before Asia really takes a hold and eyes will be on a strong open in Tokyo.

EUR/USD, having already suffered a poor day in European markets was carving out even lower territory and testing the commitment of the bulls below 1.3250 ahead of an important fib level at 1.3225.

GBP/USD suffered blows from the greenback despite its earlier advances on the back of the two MPC members who actually voted for a hike this time around. The pair was unable to hold onto higher territory and we now sit 85 pips lower from the high Chief analyst at FXStreet, Valeria Badnarik explained that in the 4 hours chart, technical readings present a cleared bearish tone, with indicators turning strongly south after correcting oversold conditions.

Key events:

Japan looks at adding 1 trln JPY of stimulus

FOMC minutes boost the dollar

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