Major currency pairs today are trading within narrow ranges, as everyone is waiting for the main event of the week — the FOMC meeting. Asian forex market rose amid a risk-seeking drive caused by increased optimism regarding trade negotiations between the US and the PRC, as well as a hint from the head of the ECB Draghi to lower rates.
Demand for the yen rose amid reports that in Iraq a rocket hit the office building of a foreign oil company. The USD / JPY pair fell to 108.30, departing from the levels of 108.60. Ozzy (Australian dollar) stays around 0.6875, despite the craving for the risk and the rise in iron ore prices. The pressure on the currency is exerted by the pigeon RBA protocol.
Kiwi is in demand above the mark of 0.65 after the New Zealand data reflected the reduction of the currency account deficit, but its growth is limited in anticipation of the Fed’s decision. Euro and pound are traded in a flat in anticipation of new data and players digest yesterday’s statement by Draghi. Lyra has become the main outsider in the foreign exchange market amid news about new US sanctions.