Daily Analysis: 20 Feb 2019

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USD

Fundamental Analysis

(20th Feb): The Federal Reserve met market consensus of holding the benchmark Fed rate unchanged at 2.5% while
communicating required caution for future policy moves rather than emphasizing further on rate-hikes. Investors will look to
confirm recent bearish bias on the monetary policy and balance sheet for fresh impulse. The minutes are also likely to reiterate
the “wait and watch” approach on interest rates counseled by Fed’s Powell last month. That, however, has been priced in by
markets.

 

 

(19th Feb): The dollar index slowed down after the US Department of Commerce sent a message to President Donald Trump,
on which the President could free the rates for imported cars and car parts. The dollar against the basket of currencies moves
0.2 percent down to 96.69, reaching high 97.37, the highest level since December 17. The DXY started on Tuesday steady after
Monday’s holiday, and the currency is more likely to consolidate awaiting for Wednesday’s FOMC meeting minute.

 

 

(18th Feb): The dollar index, DXY, a gauge of its value versus six major peers was marginally lower at 96.85. The index has
gained 1.4 percent so far this month despite weaker-than-expected U.S.data as well as a cautious Federal Reserve which is
widely expected to keep rates steady this year due to a slowdown in growth and muted inflation.

 

The dollar fell versus a basket of its peers on Monday as rising expectations of a U.S.-Sino trade deal led investors to shift away
from the safety of the greenback into riskier assets. Both the United States and China reported progress in five days of
negotiations in Beijing last week, although the White House said much work remains to be done to force changes in Chinese
trade behavior.

 

 

 

Technical Analysis

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JPY

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Fundamental Analysis

(20th Feb): BOJ’s Kuroda talked dovish yesterday and the selling in JPY seen at press time likely indicates the markets are expecting the central bank head to reiterate the readiness to do more if … [/blur][/vc_column_text][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” background_animation=”none” css_animation=””][vc_column][vc_empty_space height=”35px”][vc_row_inner row_type=”row” type=”full_width” use_row_as_full_screen_section_slide=”no” text_align=”left” css_animation=””][vc_column_inner width=”1/5″][/vc_column_inner][vc_column_inner width=”3/5″][vc_separator type=”normal” color=”#b70909″ border_style=””][/vc_column_inner][vc_column_inner width=”1/5″][/vc_column_inner][/vc_row_inner][vc_empty_space height=”35px”][/vc_column][/vc_row][vc_row row_type=”row” use_row_as_full_screen_section=”no” type=”full_width” text_align=”left” background_animation=”none” css_animation=””][vc_column width=”1/5″][/vc_column][vc_column width=”3/5″][kswr_heading head_align=”center” head_subtitle_color=”#333333″ head_title=”ACCESS RESTRICTED” head_title_fsize=”font-size:23px;line-height:2;” head_title_fstyle=”font-family:Inherit;font-weight:700;” head_subtitle_fsize=”font-size:17px;line-height:1.5;” head_subtitle_fstyle=”font-family:Inherit;font-weight:inherit;” head_title_margins=”margin-top:0px;margin-bottom:0px;” head_subtitle_margins=”margin-top:0px;margin-bottom:0px;”]Our comprehensive daily reports covers both technical and fundamental analysis, and are customised to your requirements.

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