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Session Recap: Okay Fed... here we go!

FXstreet.com (San Francisco) - The US Dollar traded lower for second day as investors have assumed a Fed's cut of 10-15 Bn in its bond buying program. Overall, market players were reluctant to take heavy risks and majors moved sideways.

The EUR/USD priced in a narrow range in between 1.3350 and 1.3360 in the American session. "Anyway, the pair remains under the bull’s control, consolidating a few pips below the 1.34 mark and finding buyers on dips since the week started," commented FXstreet.com chief analyst Valeria Bednarik. "Still with the post Summers withdrawal gap unfilled."

The GBP/USD remained above the 1.5900 market; the USD/JPY consolidated 99.00 levels; the USD/CAD declined to close below 1.0300 after touching fresh lowest since August 1st at 1.0273.

Main headlines in the American Session:

US: Annual CPI at 1.5% in August

US: NAHB Housing Market Index unchanged at 58 in September

Samaras: Recession in Greece is coming to an end

Metals retreat on final countdown

Wall Street advances as experts expect modest taper

Wall Street advances as experts expect modest taper

Wall Street advanced on Tuesday the day before the FOMC meeting as investors are expecting a modest 10-15Bn taper in the Fed's bond buying program. The Dow and the S&P 500 rose for third day and the Nasdaq finished at 13-year high.
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AUD/NZD eyeing August lows

AUD/NZD has settled down at 1.1350 closing the gap and finding bids on support. Risk for the pair comes in the form of markets attention turning towards FOMC tomorrow and subsequent positioning may favour the higher yielding of the pair initially.
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