EUR/USD bounces off lows 35-pips; FOMC could knockout cold the euro
Currently, EUR/USD is trading at 1.0537, marginally up +0.02% or 2-pips on the day, having posted a daily high at 1.0556 and low at 1.0492.Today's EU economic docket had aligned valuable releases expected by market participants to have a better understanding of the progess, if any, the eurozone had achieved in the last 12-months as Paul Hannon at WSJ noted, "For the first time in almost four years, none of the eurozone?s 19 members was in deflation during January." Although, the Consumer Price Index (YoY) clocked 'as expected' at 1.8%, there is evidence that some policies had a positive impact in the bloc. On the other hand, the Euro vs. American dollar exchange rate seems to dilute further political risks from France as 'Frexit' and Greece as another 'bailout' as the currency pair trades 330-pips from the 2017 high. Hence, the shared currency had an interesting recovery during the first 5-weeks of the year but still suffers from the ongoing disconnected communication among EU members.Finally, traders and investors move their battle horses as a rate hike in March, although too soon, has not been ruled out. Today's FOMC minutes should provide clarity or more evidence to keep entertaining the idea. Historical data available for traders and investors indicates during the last 8-weeks that EUR/USD pair had the best trading day at +1.13% (Jan.5) or 119-pips, and the worst at -0.80% (Jan.18) or (84)-pips. Furthermore, the US 10yr treasury yields have traded from 2.45% to 2.38%, down -0.29% on the day at 2.42% or -0.0071, during today's session it quoted as low as -1.18%. In terms of technical levels, upside barriers are aligned at 1.0590 (50-DMA), then at 1.0735 (100-DMA) and above that at 1.0830 (high Feb.2). While supports are aligned at 1.0490 (low Feb.22), and below that at 1.0380 (low Jan.4). On the other hand, Stochastic Oscillator (5,3,3) seems to debate between continuation towards 'oversold' or shift direction to head north. Therefore, there is evidence of a neutral stand during today's trading session.

GBP/USD stuck between key daily smas and range bound
While we await the FOMC minutes, currently, GBP/USD is trading at 1.2457, down -0.11% on the day, having posted a daily high at 1.2510 and low at 1.2423.GBP/USD is range bound ahead of the FOMC minutes today and after a disappointing set of rhetoric from the BoE of late in respect to inflation and outlooks for the UK economy. Brexit remains a key concern among investors despite the surprising performance of the UK to date since the referendum decision and vote to leave the EU. France?s Bayrou backs Macron; says will not stand in Presidential election"The UK has more Article 50 debating in the House of Lords and testimony from BOE Governor Mark Carney to the Treasury Select Committee," explained Kit Juckes, an economist at Societe Generale, adding, "Sterling had a good day in yesterday's think markets and is back down this morning. I'm not sure it's going anywhere, but if 0.8450 breaks on the downside in EUR/GBP a tactical short makes sense, though by the same token, a break back below GBP/USD 1.2350 will get some chartists excited about a return to 1.20"GBP/USD has been trading between the 20 and 50 d sma for the best part of this month so far. These barriers are breakout levels at 1.2493 and 1.2390 to the downside on a daily closing basis. We have seen a test to the upside but without a fundamental catalyst, the price is capped on the 1.25 handle.However, to the downside, analysts at Scotiabank noted that last week?s lows (twice tested) at 1.2385 represented the effective lower bound. "We still think the GBP remains vulnerable to weakness in the near-to-medium term on Brexit and the stronger USD but we continue to view the GBP as nearing attractive levels for longer run value bets especially on some of the more beaten up crosses (EURGBP, GBPCAD)." Today, the analysts noted that recent support has been observed at 1.24 and said a break would open up risk to the early Feb low around 1.2350 followed by 1.2280.

USD/JPY inter-markets
The USD/JPY pair traded with bearish bias on Wednesday and dropped to 113.00 handle, reversing all of its gains recorded in the previous session.Tuesday's remarks by Bank of Japan Governor Haruhiko Kuroda, negating possibilities of further lowering negative interest rates, triggered the initial leg of profit taking slide in the major despite of a follow through US Dollar buying interest. Adding to this, retracement in the US and Japanese treasury bond yields pointed to cautious investors' sentiment and provided an additional boost to the Japanese Yen's safe-haven appeal. Moreover, an up-tick in the Volatility Index (VIX), leading to a corrective weakness in the US equity markets, coupled with concerns over potential political instability in the Euro-zone, ahead of the French Presidential elections, also boosted demand for traditional safe-haven assets and further collaborated to the pair's weakness on Wednesday.Meanwhile, increasing bets for an eventual Fed rate-hike action, sooner-rather-than-later, seems to be lending some support and helping the pair to hold the 113.00 support area, at-least for the time being.Judging from today's price-action, traders also appeared to readjust and hedge their long-dollar positions in the event of any less hawkish statement from the FOMC meeting minutes, scheduled for release later during the day.In absence of any major market-moving releases, broader market risk sentiment (VIX) and treasury yield dynamics, which would take fresh cues from today?s Fed minutes, remains key determinants of the pair?s next leg of directional move.

USD/CAD targeting 100-DMA near 1.3280
Currently, USD/CAD is trading at 1.3195, up +0.42% or 56-pips on the day, having posted a daily high at 1.3209 and low at 1.3110.Today's CAD economic docket had traders and investors waiting for Retailes Sales (MoM) and Retail Sales ex Autos (MoM) readings to allocate or dilute portfolio positions. However, both releases failed to deliver positive figures as RS clocked (0.5%) below 0.0% consensus and previous 0.3%, also RS ex Autos printed a negative result at (0.3%) below 0.6% consensus and previous (0.1%). As expected, the Loonie lost ground against the American dollar as the pair now challenges the 50-DMA.Historical data available for traders and investors indicates during the last 8-weeks that USD/CAD pair, a commodity-linked currency, had the best trading day at +1.71% (Jan.18) or 227-pips, and the worst at -1.02% (Jan.17) or (133)-pips.In terms of technical levels, upside barriers are aligned at 1.3211 (high Feb.7), then at 1.3280 (100-DMA) which seems to build a 'Walls of Troy' multi-year resistance region since July 2015 and finally above that at 1.3386 (high Jan.20). While supports are aligned at 1.2968 (low Jan.31), later at 1.2818 (low Sept.7) and below that at 1.2650 (low Jun.8).On the other hand, Stochastic Oscillator (5,3,3) seems to move faster into overbought territory. Therefore, there is evidence to expect further US dollar gains in the near term.The pair requires a close and open above the 50-DMA near 1.3218 to dilute any bearish pressure that could drag it lower back to the 200-DMA.

AUD/USD rejected near 0.7710; Aussie vulnerable against FOMC-US yields
Currently, AUD/USD is trading at 0.7685, up +0.14% or 11-pips on the day, having posted a daily high at 0.7710 and low at 0.7666.The Australian dollar vs. American dollar seems to navigate vulnerable to any positive dollar-long statement, news release or Trump's tweet as RBA's Lowe lowered the central bank's guard during yesterday's economic statement. Furthermore, the Aussie failed to gain traction above 0.7710 which indicates how commercials and institutional players see no value in exchanging above such significant level.On the other hand, the US economic docket aligns two events: Existing Home Sales (MoM) and FOMC minutes including member Powell speech. These events may deliver the necessary value the US dollar is missing to move higher. Historical data available for traders and investors indicates during the last 8-weeks that AUD/USD pair, a commodity-linked currency, had the best trading day at +1.18% (Jan.17) or 89-pips, and the worst at -0.81% (Jan.18) or (61)-pips. Furthermore, the US 10yr treasury yields have traded from 2.45% to 2.38%, down -1.18% on the day at 2.40% or -0.0286.In terms of technical levels, upside barriers are aligned at 0.7731 (high Feb.16), then at 0.7777 (high Nov.8) and above that at 0.7834 (high April.21). While supports are aligned at 0.7617 (low Feb.14), later at 0.7512 (100-DMA) and below that at 0.7459 (50-DMA). On the other hand, Stochastic Oscillator (5,3,3) seems to head south. Therefore, there is evidence to expect further Aussie losses in the near term.

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