Daily FX Wrap Up

After a relatively dovish FOMC report, both the Euro and the Yen traded higher against the US Dollar. The current opinion in the FX market is focused around the idea that the Federal Reserve has actually stopped rather than merely paused in their tightening cycle. In the US, trader's focus turned to the Durable Goods report, which might be the most important release of the week. According to the report, the US economy is indeed on the verge of an up-turn after soft third quarter performance. As many analysts have recently noted, retailers have weathered the slowdown reasonably well, but the true impact of the contraction in housing will be a bit severe. Consumers have less money to purchase, TVs, cars and major appliances. This report just may be the last positive ray of hope before a slowdown in US economy. Today the EUR / USD broke the 1.2640 resistance level and closed out the day at 1.2690.