Forex traders are anticipating the afternoon publication of the US Federal Funds Rate, the recent decision made by the Fed regarding its short-term interest rates. Following last night’s positive vote of confidence in the Greece parliament, global markets appear mixed and jittery from heightened risk sensitivity and increased volume.
Many analysts are expecting Fed Chairman Ben Bernanke to once again downplay the risk of runaway inflation in the United States, signaling a continuation of the 0% to 0.25% record low interest rate. If dovish comments are reiterated from last month’s release, traders may pull away from the USD in exchange for its higher yielding counterpart, the EUR, especially given the recent step towards achieving a bailout of Greece last night.
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