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All Quiet Ahead of the Fed excluding GBP
Given what could be a seminal moment in the US interest rate watch story currency dollar pairs have mostly been quiet for today seeing a consolidation for the most part ahead of the impending double header. First we will be having the FOMC’s interest rate announcement at 1400GMT where ofcourse no one is actually expecting to see any action. With this however will be the release of the committe’s own Economic Projections which should be interesting as we see continued strength in the US labor markets even as data elsewhere do not appear to suport the notion with Monday’s Capacity Utilization Rate actually slipping.
Thirty minutes after we will be having the more important Fed press conference where market would likely be pressing the usually dovish Fed Chair Yellen about the schedule for a US tightening given the strength in US jobs growth. Interestingly March was actually the supposed time for a rate hike according to some theories before when Yellen suggested things could happen 6 months afte the end of the QE3 program.
Among the charts interest lies mostly on the British Pound having been hammered across the board on a disappointingly steady ready in Unemployment Rate at 5.75 against expectations of some improvement. Note that we are now developing a follow through to the weekly break of 1.4813 from the previous week, operning thepotential for further losses to the 1.4226 region, May 2010 lows with scant support elsewehere but the psychological 1.4500 area.
Source: http://www.fxinstructor.com/blog/all-quiet-ahead-of-the-fed-excluding-gbp
Usually whenever things are calm and quiet there is the storm awaiting and same looks the case here so if anyone thinks that it will stay longer should reconsider. I won’t trust the market ever again and that’s why I am keeping my trade on with a tight stop loss for any difficult situation and having a quality broker like OctaFX, it only makes it better for me since I am operating their swap free account so with that I don’t need to pay any fees to keep my trades on and I can also keep high risk management.