31 Jan 2014
Session recap; Fed not concerned about EM’s
FXstreet.com (Guatemala) - The week has been determined by tapering once again and this time the effects this may be having on the emerging markets (EM’s). Today, Fisher and Williams, Feds spokesman, confirmed to markets that the Fed is not concerned with emerging markets currently and that implies the tapering will continue at the current pace.
The Euro has taken a hit on the basis that the ECB is likely to cut rates soon given the fall in the EZ inflation rate. EUR/USD is moving into the FX Space’s close on the lows having broken key support and we are left wondering whether the pair is trying to base here or if there is going to be room yet towards the 1.33 handle.
GBP/USD is also on the lows, and continues on the descending path towards 1.6400 with expectations ahead of the Inflation Report and a Dovish tone coming from Carney.
USD/CAD was a big mover on the session, dropping from 1.12 handle the pair had been drifting towards but losing over a big figure, finishing up however on a recovery back onto the handle for the 1.1130’s. The drop could be associated with the Keystone XL pipeline from the US state department. The project would expand an existing pipeline from the vast tar sands of Alberta to refineries in the US Midwest, nearly doubling the initial capacity and transporting crude oil deeper into America to refineries on the Gulf coast of Texas.
The Euro has taken a hit on the basis that the ECB is likely to cut rates soon given the fall in the EZ inflation rate. EUR/USD is moving into the FX Space’s close on the lows having broken key support and we are left wondering whether the pair is trying to base here or if there is going to be room yet towards the 1.33 handle.
GBP/USD is also on the lows, and continues on the descending path towards 1.6400 with expectations ahead of the Inflation Report and a Dovish tone coming from Carney.
USD/CAD was a big mover on the session, dropping from 1.12 handle the pair had been drifting towards but losing over a big figure, finishing up however on a recovery back onto the handle for the 1.1130’s. The drop could be associated with the Keystone XL pipeline from the US state department. The project would expand an existing pipeline from the vast tar sands of Alberta to refineries in the US Midwest, nearly doubling the initial capacity and transporting crude oil deeper into America to refineries on the Gulf coast of Texas.