Mixed Dollar

The long awaited day has come finally, the FOMC will announce their decision to their interest rates later today but first a set of data will be released from various economies around the planet, and should have major impact on the financial markets especially the Euro and the Dollar.

The Euro still haven't managed to gain strong momentum against the Dollar, the pair remained trading within the $1.55 levels just a whisker from the $1.5600s in thin trading so far, the Euro recorded a low of 1.5552 and a high of 1.5597 the Euro should acquire strong momentum near the 1.5520s and if it was able to breach the 1.5620 it could reach as high as $1.57, the movement will depend mainly on the fundamentals coming out today; the Euro Zone will release their CPI flash estimate today along with unemployment data.

The Pound declined back against the U.S Dollar after a report showed that U.K consumer confidence dropped to a 16-year low as rising food and energy prices along with signs of weakening housing sector started to take its toll on Britons, the Pound declined to the $1.96 levels, recording a high of 1.9686 and a low of 1.9622, if the Pound was able to breach the 1.9600 it could continue the downside wave though down to the 1.5550, while to progress the upside wave means the pair will have to breach the 1.9700-1.9730 levels.

The BOJ decided to keep their interest rates steady at 0.50 percent which was inline with markets expectations, earlier this year investors thought the BOJ will be forced into cutting interest rates, yet as inflation rose to its highest in a decade and the BOJ confirmed they remained Hawkish investors started to believe the BOJ will hike rate by year end, the USD declined yesterday against the Yen back to the 103 levels and settled today ahead of the U.S data, the USD/JPY pair recorded a high of 104.19 and a low of 103.73.

Crown Forex

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