FW: CIMB FX Daily 14 June 2018 - USD Flails Despite Hawkish FOMC Decision

 

 

Good morning,

While we look back 

• The Dollar Index was heavy starting from the London open to around 93.60, before the FOMC decision saw the DXY surge to a high of 94.0 before gains were promptly erased as investors are still looking ahead to two big risk events this week: June ECB meeting and the US tariffs on China deadline.
• The weaker USD reaction suggests that investors are unwilling to be bullish USD before the outcome of the live June ECB meeting is known.  
• EURUSD rose by around 0.4% to 1.1790 during the London open only to be whipsawed to 1.1726 after the FOMC decision.
• The USDJPY saw more muted movements in comparison to its G3 peers, with a momentary surge to 110.85 after the FOMC decision promptly erased for the pair to close at 110.34.  

(See attached file: FX Daily 140618.pdf)

Regards,

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


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