Focus turns to FOMC, dollar slips, euro up on German data

September 17, 2013

Currency markets are slowing down in anticipation of a major risk event of the year, which is the much anticipated Federal Open Market Committee announcement on Wednesday. Many investors are focusing on what the Fed will say and whether it will decide to taper stimulus and by what amount. 

Any large reduction to the current $85 billion a month asset purchase program, say more than $10 billion, will move markets, but may minimal amount will unlikely disrupt markets. The dollar is being weighed down by this bond purchase program, so any signal the Fed will begin scaling back on this will help the dollar appreciate.

Today USDJPY was directionless between a range of 99.05 and 99.30 yen as investors prefer to wait on the sidelines before the FOMC meeting, since this pair will be the most affected by any Fed announcement.

In other news, the main economic data during the European session was the German ZEW index on investor confidence. The index hits its highest level since April 2010 showing that Europe’s largest economy has a brighter outlook its economy as well as for the overall Euro zone economy.

EURUSD rose to a session high of $1.336, gaining 0.2 percent from the session open of $1.3342.

Sterling was hurt by lower UK inflation data today, which raises the likelihood of interest rates remaining low. 

GBPUSD fell to a session low of $1.5884 after hitting  an early session high of $1.5935.

Coming up in the US session, data will be released on US inflation as well as on the US housing market.

Publication source
FxNet information  FxNet reviews

October 25, 2016
US flash Markit PMI jumped 1.7 points to 53.2 in October
Asian stock markets are mostly down, as the positive confidence indicators out of Europe and the U.S. yesterday were overshadowed by weak GDP numbers from South Korea, which weighed on most markets. Topix and Nikkei outperformed, with a weaker Yen underpinning exporters...
October 25, 2016
Fed speech, flash PMI push dollar to a fresh 8-month high
Marking the final day of Fed speeches ahead of the one-week blackout period starting today, FOMC voting member, Bullard said that December was most likely for a rate hike...
October 25, 2016
M&A activities drove equities, focus shifts to earnings
Equity markets began the week on a positive note with M&A activities, positive earnings, and better than expected manufacturing data from the Eurozone and U.S. all boosting appetite to risk...

Fort Financial Services Rating
Larson&Holz IT Ltd Rating
OctaFX Rating
Grand Capital Rating
Tickmill Rating
FxPro Rating

Banc De Binary Rating
TropicalTrade Rating
OptionsXO Rating
Grand Option Rating
Anyoption Rating
OptionBit Rating