Source: ForexYard
Today’s economic calendar will be highlighted by the release of the FOMC meeting minutes which are likely to show the Fed stands ready to act should inflation expectations continue to decline.
Investors remain firmly focused on events in Europe though the release of the meeting minutes from the past FOMC meeting could draw some attention from the markets. The Fed will likely address the improved US economic data but also keep the door open to additional monetary policy easing should the Fed see the need. With the doves firmly in control of the Fed and stagnant US unemployment, we continue to expect the Fed to initiate QE3.
The USD continues to move higher this morning versus the majors with the lone exception being the EUR/USD which has support at the base of the recent consolidation at 1.3430 and resistance at the October 18th high of 1.3555. Cable is trading near yesterday’s low of 1.5610 and a break here could open the door to the September low of 1.5325.
Read more forex trading news on our forex blog.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.