The U.S. Federal Reserve Bank is expected to announce the end of its asset buying program after the conclusion of the two-day policy meeting this afternoon. At the same time, it is not expected to surprise with any change in tone on raising interest rates as the U.S. inflation data is still weak, the FED will attempt to reassure markets that any interest rates will not be immediate.
EUR/USD consolidated within reach of its yesterday’s highs at 1.2760, having trades most of the Asian session within a tight range of 25 pips around 1.2740. Trading volumes seem subdued ahead of the FED announcement, and the pair looks like to hold easily on the support level of 1.27 for today’s trading session. Towards the high end, it will be surprising to see any movement beyond 1.2760 before the FED policy announcement; therefore we shall expect a tight range trading session.
USD/JPY continued trading within the range established late last week, hovering around 108 level. The recent global equity rally, backed with pleasant corporate results have improved investor risk sentiment in the past 2 weeks and this has helped USD/JPY to bounce of its mid-month lows seen down to 105.25. Here we again expect a tight range trading until tonight, and we maintain an upside bias on the pair.
The Pound has traded not far from the 1-year low against the U.S. Dollar seen earlier this month, only managing to bounce off 200 pips from 1.5873. It is now trading just above 1.61 consolidation near for the past month.
On the side of the FOMC rate decision to be announced this afternoon ad 18:00 GMT, this morning U.K. data with regards to mortgage approvals, money supply and net consumer credit will be released at 09:30 GMT.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
U.S. Dollar steady ahead of FOMC meeting
No comments:
Post a Comment