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.


EUR/USD

Supports 1.3325 1.3275 1.3235 | Resistance 1.3380 1.35405 1.3450


USD/JPY

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


GBP/USD

Supports 1.5880 1.5850 1.5810 | Resistance 1.5940-1.5970-1.6000

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