Home All eyes on FOMC meeting
Daily Look

All eyes on FOMC meeting

Financial markets have settled themselves but we’ve seen some abnormal moves recently with the first being the bounce in the euro following the Greek General Election results and then yesterday the US dollar reacted strangely to better than expected consumer confidence seeing a bout of profit taking. Many were blaming the poor durable goods data for the dollar’s weakness however these moves indicate that the trends of a weaker euro and stronger dollar are a little over extended so we saw EURUSD touch 1.1400 at one stage and GBPUSD recovered to 1.5200 however this morning both are a little below these levels at 1.1340 and 1.5165 respectively.

Today all eyes will be on the FOMC meeting this evening which could determine whether this dollar pull back presents a buying opportunity or whether there’s further profit taking to be had. With inflation continuing to decline and oil prices remaining anchored below $50 a barrel, expectations have increased for a dovish statement this evening. This could lead to further dollar weakness and push EURUSD back towards 1.1600.

Further reading:

Fed Preview: USD buy opportunity on “business as usual”?

USD Super Cycle Intact; Sell EUR/USD Rebounds targeting 1.09 – Morgan Stanley

FxPro - Forex Broker

FxPro - Forex Broker

Forex Broker FxPro is an international Forex Broker. FxPro is an award-winning online broker, offering CFDs on forex, futures, indices, shares, spot metals and energies, serving clients in more than 150 countries worldwide. FxPro offers execution with no-dealing-desk intervention and maintains a client-centric business model that puts customer needs at the forefront of our operations. Our acquisition of leading spot FX aggregator, Quotix, enables us to offer access to a deep pool of liquidity, as well as top-class order-matching and some of the most competitive spreads in the market. FxPro is one of only few brokers offering Negative Balance Protection, ensuring that clients cannot lose more than their overall investment. FxPro UK Limited is authorised and regulated by the Financial Conduct Authority (registration number: 509956). FxPro Financial Services Limited is authorised and regulated by the Cyprus Securities and Exchange Commission (licence number: 078/07) and by the South Africa Financial Services Board (authorisation number 45052). Risk Warning: Trading CFDs involves significant risk of loss.