Forex Traders Awaiting FOMC Tapering Decision

<p>After yesterday’s news which shocked the market that Summers had removed himself from the race to be the next FED chairman and speculation that the […]</p>

After yesterday’s news which shocked the market that Summers had removed himself from the race to be the next FED chairman and speculation that the new favourite Yellen is now looking set to be announced by Obama in the Fall, the market has calmed down and USD gained back some of the losses that occurred from the open.

Overnight we had some tight ranges which we expect is likely to carry on as most news out today is not affecting the market as traders await the FOMC decision on Tapering tomorrow night.

RBA minutes was released last night and they say that a rate cut is still possible but signals no moves are imminent. This caused AUD to drop from its highs traders eye more of a wait and see approach for the RBA.

Data to watch for today includes UK CPI (expected at 2.7%), German ZEW (expected at 45.3) and US Core CPI (expected at 0.1%).

 


EUR/USD

Supports 1.3325-1.3240 | Resistance 1.3380-1.3450


USD/JPY

Supports 99.00-98.50-98.10 | Resistance 99.40-99.70-100.00


GBP/USD

Supports 1.5880-1.5850   | Resistance 1.5950-1.5980-1.6000

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