What can be expected from the FOMC?

<p>Finally the most anticipated FOMC in years is here, we are still seeing tight ranges from yesterday and overnight and as we lead up to […]</p>

Finally the most anticipated FOMC in years is here, we are still seeing tight ranges from yesterday and overnight and as we lead up to the announcement traders either squaring up or positioning to see what they think will happen. The majority are looking for 5-15 billion of tapering on the monthly purchases mainly in the Treasury bonds, as a fall in home loans is pushing the FED away from tapering in Mortgage backed bonds. There are still some suggestions that there will be no Tapering tonight due to the data still not being enough to warrant a cut.  All I can say is whatever the decision is tonight 0 -15 billion the FX markets will be extremely volatile.

Today we also have data from UK the MPC votes on asset purchases and the bank rate expecting the same as the last with a  0-0-9 on both releases. Building permits also due from the US expected at 0.95m and 0.93m for housing starts, still not expecting too much of a move over the data today as all eyes and ears are on the FOMC tonight at 7pm BST.


Supports 1.3325 1.3275 1.3235 | Resistance 1.3380 1.35405 1.3450


Supports 99.00-98.45-98.10 | Resistance 99.40-99.60-100.00


Supports 1.5880 1.5850 1.5810 | Resistance 1.5940-1.5970-1.6000

Build your confidence risk free
Join our live webinars for the latest analysis and trading ideas. Register now

StoneX Financial Ltd (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.

No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

For further details see our full non-independent research disclaimer and quarterly summary.