Posted Jul 29, 23:53

The other omission from the Fed statement

Industrial Production (JUN) (m/m) [P] Jul 29 23:50
Industrial Production (JUN) (y/y) [P] Jul 29 23:50
The other omission from the Fed statement Chart
5 hours ago: 

The FOMC statement was not as hawkish as many anticipated. Despite that, the US dollar remained resilient afterwards, we look at what that means. Up next we hear from the RBA leader and get Japanese industrial production data. Our Premium long in EURUSD from Jul 21 at 1.0890 hit its final 1.1120 target on Sunday. Today, we opened a new USD long, supported by 2 charts and 4 reasons.   The snapshot below highlights the omission of the Fed's phrase from the June meeting that it regarded energy prices to have stabilized. Since the 20% decline in energy prices took place, the Fed has not only taken notice, but any further decline in  prices may creep into the Fed's inflation viewpoint. 

The Fed has a dual mandate of full employment and low, stable inflation. Yellen is increasingly comfortable on the first part. The statement also noted that “some further” progress on jobs was still needed before raising rates when previously it said only “further”. The addition of “some” is a signal that the economy is closer to meeting the first part of its mandate.

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PREMIUM INSIGHTS Update: Jul 29, 18:53
 
Commodity FX Bounces, Japan Retail Sales Next Jul 29, 2015 0:09: 

A rebound in risk trades and raw materials underpinned commodity currencies Tuesday, we evaluate whether or not it will last. The New Zealand dollar was the top performer and continued to rise early in Asia-Pacific trading on Wheeler comments while the euro lagged. Japanese retail sales are up next.  5 Premium trades remain in progress. A new update will be issued on Wednesday ahead of the Fed statement.

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