Thursday, 31 January 2013

FED fails to push dollar lower



FED interest rate decision failed to push US dollar lower and Euro rally stalled. Japanese Yen also failed to drop further and may start rising bit by bit. Tomorrow we have Non Farm Payrolls data, which will be key event of the week. It may hint as to whether Euro rally will continue or not. It can also provide new optimism for Yen bears. If that fails we may see significant correction in prices as Yen will strengthen, particularly against British pound. gbp/jpy may collapse to 134.00 level in the coming weeks and eur/jpy to 113.00. 

Eur/usd will also down. At least short term correction to 134.00 level should take place. So, let us wait to see further development in price action after NFP.

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