So yea today is the fomc event , In next 90 minutes we will have the fomc minutes released (no press con only minutes) and the over all expectations is that there wont be much of surprises. There has been a chatter going on expecting no hike in September which caused U.S. Dollar weakness through out this week, But since yesterday we have seen some decent strength emerge in U.S. Dollar because of FED Member Dudley's comments that we could one at least one HIKE this year , which has raised the expectation of a December Hike.
We have seen Usd / Yen and Gbp / Usd trade key support levels this week and reversing from there.Today's minutes should be closely watched/read to see what the FED say about why they didn't consider a hike in July and also what is the language used about risk and any possible clue about further hikes.As usual we will have to carefully read about what they say about all those past data's and also their view about current economic situation.The reaction may be very muted one if the minutes just mimic the last one.
Meanwhile the levels to look for in Usd / Yen is strong support at 101.70/45 area and resistance at today's intra day high of 101.15 , Also everyone is looking at how usd / yen will behave below parity , as below 100 there could be a possible intervention by BoJ. So there will be some bargain hunting below parity , same time a break below yesterday's low of 99.51 should see a quick drop to 99 where it could find some more buyers.
Lastly the question everyone asks is Will FED surprise? well its question that can be answered only in next 90 minutes.
Feel free to contact me here for any further queries.
Disclaimer :- Trading is not for the weak hearted , Trading these instruments involves high level of risk and losses can exceed capital (depending on your FX Broker).My advises should be used as a medium to learn and not as a medium to get RICH.I dont have any formula for anyone to get RICH. I shall share no responsibility for anyone's profit or losses.Once again Trading is not for everyone.
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