Morning forex briefing

  • November 15, 2006
  • Jason Jankovsky

The USD is firmer against the majors with the better
performance seen against cable as New York gets underway. Traders
note that the Greenback remained firm in Asia as book squaring was seen ahead
of the BOJ policy meeting. Although no change in rates is expected at this
time the stronger Japanese GDP numbers released earlier this week have
suggested that a rate hike is coming as early as next month so traders will be
closely watching for hawkish language in this week’s statement. Should the BOJ
hint at a rate hike traders expect the USD/JPY pair to sell-off at least
near-term. To start New York, the USD/JPY is still holding to an inside range
day from Monday’s large move; high print at 118.19—