31 Jul 2013
FOMC decision next: Impact on USD
FXstreet.com (Córdoba) - Last but not least during the American session, the FOMCwill announce its monetary policy decision at 18:00GMT.
Of course, investors will be eagerly watching Fed’s statement looking for cues over the timing the central bank could begin to taper its asset purchases. However, according to Valeria Bednarik, chief analyst at FXstreet.com, market reaction’s to the announcement could be more limited than usual as it comes 2 days before the NFP report and as Bernanke won’t offer a press conference afterward.
"So far, FED members’ jawboning has already taken its toll on the greenback, that has been nose diving since Thursday, and more is to be expected before the meeting. But no press conference is schedule following the announcement, which means there are little chances of a certain date for tapering, the main concern of market players, anticipating a dollar selloff with the news”, Bednarik comments.
EUR/USD has had a quite choppy day on Wednesday, seesawing between a low of 1.3212 and a high of 1.3300, level which has proven to be a tough hurdle to overcome. A break above this latter would pave the way toward 1.3325 (Jun 18 low) and to 1.3380 (Jun 17 high) ahead of 1.3400. On the other hand, loss of the 1.3210/00 area, could see EUR/USD falling to 1.3165 (Jul 23 low) and even 1.3100 with not much in the way.
Of course, investors will be eagerly watching Fed’s statement looking for cues over the timing the central bank could begin to taper its asset purchases. However, according to Valeria Bednarik, chief analyst at FXstreet.com, market reaction’s to the announcement could be more limited than usual as it comes 2 days before the NFP report and as Bernanke won’t offer a press conference afterward.
"So far, FED members’ jawboning has already taken its toll on the greenback, that has been nose diving since Thursday, and more is to be expected before the meeting. But no press conference is schedule following the announcement, which means there are little chances of a certain date for tapering, the main concern of market players, anticipating a dollar selloff with the news”, Bednarik comments.
EUR/USD has had a quite choppy day on Wednesday, seesawing between a low of 1.3212 and a high of 1.3300, level which has proven to be a tough hurdle to overcome. A break above this latter would pave the way toward 1.3325 (Jun 18 low) and to 1.3380 (Jun 17 high) ahead of 1.3400. On the other hand, loss of the 1.3210/00 area, could see EUR/USD falling to 1.3165 (Jul 23 low) and even 1.3100 with not much in the way.