Forex Market News
Federal Open Market Committee
With the FOMC meeting this week, trading will be relatively subdued running into it, volatility should be lower. It is expected that the Fed will end QE on Thursday but everyone will be watching for the wording in the statement. They will be looking for indications on the Fed’s stance on the health of the economy, ie: when will rates be likely to rise in the US? The majority are looking for an Oct 2015 date but with recent strong data that could be brought forward. Most likely is that the Fed will stick to their line that it is up to the data. So expect a stronger Greenback off the back of the meeting.
European Central Bank
Tested the European banks and were stressed to find that 25 failed. Italy being the worst of them. This should put pressure on the Euro at the open.
Not much else to discuss this early in the week after a quiet week last week, other than the bounce in the stock market which came off the back of strong earnings and data in the US. Euro stocks were weaker from the expected bad results of the health test from the ECB. So, watch the technicals now but be aware of the FOMC.
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