31 Jul 2013
The world awaits the FOMC decision and statements
FXstreet.com (Barcelona) - Unlike many of the recent Fed meetings, Wednesday’s meeting will feature only the FOMC’s decision and accompanying statement – but still the world is watching.
No press conference and no economic outlook this time around
Wednesday’s interest rate decision will only be accompanied by their official statement regarding their decision. Traders and analysts are hoping for more guidance on the Fed’s plans regarding their bond buying program.
A month ago, the dreaded “tapering” word was making the rounds and interest rates were flying and stocks were correcting. However, Ben Bernanke subsequently put risk bulls’ minds at ease by indicating that the current QE efforts would likely continue unabated for the foreseeable future. So, any hint Wednesday about their plans could push rates and the US Dollar in one direction or the other.
DXY bouncing in a downtrend ahead of announcement
The US Dollar has been on the decline ever since Bernanke made his market-moving comments early in July. Technicians say that major “correction support” for the DXY can come in anywhere from 81.63 to 81.13 and possibly even down to 80.71 – depending on how one draws Fibonacci projection lines. Resistance for DXY comes in at 81.94, the 7/23 close, and is followed by the 7/24 peak at 82.42.
No press conference and no economic outlook this time around
Wednesday’s interest rate decision will only be accompanied by their official statement regarding their decision. Traders and analysts are hoping for more guidance on the Fed’s plans regarding their bond buying program.
A month ago, the dreaded “tapering” word was making the rounds and interest rates were flying and stocks were correcting. However, Ben Bernanke subsequently put risk bulls’ minds at ease by indicating that the current QE efforts would likely continue unabated for the foreseeable future. So, any hint Wednesday about their plans could push rates and the US Dollar in one direction or the other.
DXY bouncing in a downtrend ahead of announcement
The US Dollar has been on the decline ever since Bernanke made his market-moving comments early in July. Technicians say that major “correction support” for the DXY can come in anywhere from 81.63 to 81.13 and possibly even down to 80.71 – depending on how one draws Fibonacci projection lines. Resistance for DXY comes in at 81.94, the 7/23 close, and is followed by the 7/24 peak at 82.42.