FW: CIMB FX Daily 13 June 2018 - All Eyes on FOMC

 

 

Good morning,

While we look back

• The Dollar Index dipped by 0.35% to around 93.50 after the US-North Korea summit to trade range-bound before surging during the NYC session after stories emerged that Fed Governor Powell may have press conferences after every FOMC decision.
• USD reaction was muted towards US May CPI which met expectations at 0.2%MoM.
• EURUSD movements was mostly a corollary of the USD, with the pair jumping to high of 1.1809 after the Trump-Kim summit during the day session, before collapsing to 1.1734 after stories of more FOMC press conferences emerged.
• USDJPY rose ahead of the US-North Korea summit to an intra-day high of 110.49, with the conclusion of the meeting later seeing flows away from the JPY haven to close at 110.37. Lacking concrete details, investors have largely looked past the deal towards the upcoming central bank meetings. Expect the 200DMA of 110.20 to provide support for the pair.  

(See attached file: FX Daily 130618.pdf)

Regards,

J Suresh Sundaram
Treasury FX Research
CIMB Investment Bank Berhad
Tel: +603-2261 8339


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