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FOMC Surprises, Dollar Soars And Stocks Slip

ByTFI Markets
Published 06/20/2013, 05:54 AM
Updated 04/25/2018, 04:40 AM

The FOMC signaled that the Fed will begin tapering this year if the U.S. economy matches forecasts, which helped the dollar to soar and stocks to slip.Bernanke’s hawkish tone was more than the market had anticipated. Bernanke stated that the Fed can reduce its pace of purchases later in 2013, and end the program altogether in mid-2014 providing data meets forecasts. The EUR/USD hit a low of 1.3262 on the news, while the USD/JPY went as high as the 97.00 level before pulling back. Another highlight of the night was Chinese HSBC Flash Manufacturing PMI for June came in at 48.3, its lowest reading in 9 months, taking the AUD/USD to a 33-month low of $0.9238.
Technical Analysis
Trade Idea

USDJPY
The market is heading higher and now a test of the 97.00 resistance level seems to be in focus. A break and close above this level on the four hour chart should have the pair targeting 97.45 and possibly 97.80.
USD/JPY H4
Disclaimer • Risk Warning
This document should not be relied upon as being an impartial or objective assessment of the subject matter and is not deemed to be “investment research” as defined by the applicable law. This document has been issued by TFI FX only for information purposes and should not be construed in any circumstances as an offer to sell or solicitation of any offer to buy any financial instrument, nor shall it, or the fact of its distribution, form the basis of, or be relied upon in connection with, any contract relating to such action.

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