Currency Trading Forex – FX Markets Today
The dollar stabilized Wednesday in early New York trading, after falling overnight to a fresh 12 month low against the euro and 13 month lows versus the New Zealand and Australian dollars. However, after the rally for riskier currencies in Asian trading, caution has re entered the currency trading forex market again as traders look toward this afternoon’s announcement on U.S. interest rates by the Federal Open Market Committee, which is expected at about 2.15 p.m. EDT. The dollar has stabilized in European and early North American trading, returning below USD1.48 from its 12-month peak against the euro at USD1.4843. The British pound rose 0.4% against the greenback to USD1.6428 after minutes from the Bank of England showed that the monetary policy committee voted 9-0 to leave the size of its 175 billion pound asset purchase program unchanged and to make no changes in official interest rates at their September meeting. In Far East currency trading forex markets, the dollar bought 9136 Japanese yen from 91.13 yen on Tuesday.
The Canadian dollar is marginally lower Wednesday morning, reflecting a more stable tone in the U.S. dollar in general and the cautious mood ahead of the results of the U.S. Federal Reserve’s open market committee meeting later in the session. The U.S. dollar was trading at CAD1.0697 from CAD1.0688 late Tuesday.
Currency Trading Forex – Market expectation
The policy setting FOMC is not expected to raise Fed benchmark rates, but attention will focus on the statement accompanying the decision for any hints of an end to the central bank’s ultra accommodative stance. Depending on the wording of the statement and how it is interpreted by investors, the dollar sell off could resume during the New York afternoon. However most currency analysts expect everything will remain much the same, which would lead the euro to continue its rise against the dollar after the brief pause over the past few sessions as traders have taken profits and sat on the sidelines until the Fed’s decision.
Market speculation ahead of the Sept. 9/10 meeting had risen over the possibility the bank could cut the rate paid on reserves held by commercial banks with the BOE in an effort to force the banks to move the reserves into the broader economy.
The euro vs dollar presses under the USD1.4770 area nowd currently trades just under USD1.4760 as earlier mentioned stops are hunted, though momentum thus far suggesting little damage there. Stops said to extend to USD1.4755 or so, more sub USD1.4730. The euro yen offers at and above JPY135.00 so far sufficient to contain the bounce back from earlier Asian lows close to JPY134.10. A clean break above would expose trend line resistance highlighted by Technical analysts at JPY135.23, ahead of Monday’s highs just shy of JPY135.50. Tuesday’s close above the Ichimoku Cloud seen as a positive signal in the currency trading forex market, the top of which today seen as pivotal at JPY134.84.
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