All eyes on US as FOMC expected to begin tapering today

<p>Today will notably be about the FOMC announcement, which takes place later tonight. Now that they have started the taper we’ll have to wait and […]</p>

Today will notably be about the FOMC announcement, which takes place later tonight. Now that they have started the taper we’ll have to wait and see how much will be taken off tonight.

There were comments from Fed’s Williams last night saying that QE will likely end this year, suggesting that each month some amount of taper can be expected. The exact amount isn’t certain but – with most now on the thought that QE will end this year – a steady $10 billion a month could end it by October. No doubt all will be revealed later tonight after the Fed decision.

The ADP jobs report is another big release today. With this always linked to the non-farm payrolls, it will be interesting to see what happens. The expected figure is 199k – a slight drop from the previous 215k.

Overnight one should keep note of Chinese CPI data, which is expected to drop to 2.7% from 3%. This will have an impact on the USD, mainly, and also on AUD – depending on the outcome.

 

EUR/USD

Supports 1.3600 1.3570 1.3540 | Resistance 1.3650 1.3675 1.3725

 



USD/JPY

Supports 104.80 104.30 103.90 | Resistance 105.10 105.50 106.00

 



GBP/USD

Supports 1.6380 1.6335 1.6250 | Resistance 1.6434 1.6475 1.6500

 

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