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US Session recap: USD consolidation ahead of FOMC

FXStreet (Guatemala) - The FX market was in a phase of consolidation after taking some profits out of the USD.

Stocks in the US were the main event today, which helped the dollar to some extent, but focus was much more about next week. There was finally no chatter around Ebola but more on the condition in Europe. Draft copies of the stress test were leaked and it seems that there are 25 banks that have been or will be confirmed to be required to raise money with 10 out of the 190 that are on the watch list.

GBP/USD was consolidating after an up day in Europe despite the inflation results that actually tailed off and is now sitting at just 1.2% headline CPI. The core printed at 1.5% and hopes for an early rate rise are diminished. 1.61 was the highs and ranges below were down to 1.6017.

USD/CAD bulls defied the bears and the 1.12 handle remained in formation for the session after a little test below the figure. The pair was meeting supply through 1.1240 and was capped within a range here.

USD/JPY finished up in the middle of its range on the 108 handle at 108.10. The yen has been a volatile currency this week but today was put back into its place with only managing a high vs the dollar in the early US session sub the 108 handle at 107.78 the low.

AUD/USD was not very favourable to the shorts out there on the handover from Europe on demand for commodities but that was short lived when the greenback took control again and became bid taking the pair back on the 0.88 handle in a relatively non eventful session for the pair.

Key Events:

Stress test leaks reveal 25 banks failed

USD new home sales for Sep 0.467m vs 0.470m exp m/m

Standard & Poor’s 500 Index made scores of its best week since 2013

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