Forex Market Silently Waiting For Fed Action Today
A big event lining up as the Fed interest rate decision is lined up later today.
Fed is expected to keep the interest rates unchanged, but all eyes would be on policy statement.
The German GfK Consumer Confidence was released, which came in at 9.3 for February higher than the forecast of 9.1 and above the previous reading of 9.
German Import price index, released by Deutsche Bundesbank declined by 1.7% in December 2014, down from the November’s decline of 0.8%.
Swiss Consumption Indicator published by UBS increased from the previous reading of 1.29 to 1.42 in December 2014.
France consumer confidence released by INSEE measures the moods of the consumers came in at 90 unchanged whereas the market was expecting a rise from 90 to 91 in January 2015.
US MBA Mortgage Applications released by the Mortgage Bankers Association declined by 3.2% this time, compared to the last increase of 14.2%.
Pairs such as EURUSD and GBPUSD were seen consolidating in a range as investors await fed’s policy statement.
US MBA Mortgage Applications
Earlier during the NY session, the US MBA Mortgage Applications was released by the Mortgage Bankers Association. It registered a reading of -3.2% whereas the last reading was around 14.2%. There was no major impact on the US dollar, as the market was mostly silent and waiting for the fed interest rate decision which is likely to be a major market mover. There is no major change expected from the fed, but the central bank’s view on the interest rates high would be the one market might pay attention to.
Earlier today, there was hardly any movement in EURUSD and GBPUSD. The mentioned pairs were broadly seen trading in a range. Let us wait and see how pairs react after the fed interest rate decision.
London Session Recap
Earlier during the London session, there was hardly any major event except the German GfK Consumer Confidence, which just came above the expectation. The forecast was slated for a minor rise from the last reading of 9 to 9.1. However, the outcome was a bit positive, as the German GfK Consumer Confidence climbed to 9.3 for February. The most important point is that this is the highest level in 13 years. The report stated that significant increases were recorded in both economic and income expectations. Moreover, increase in the willingness to buy was also noted, as the German consumers appear to be considerably more optimistic. One optimistic point to note was the mention that economic expectations recorded a second strong increase and climbed by 8 points to 22. German consumers feel that their economy is currently improving and might gain ahead.
Technically, the EURUSD pair managed to stay above the 1.1320 support area and tested the 1.1380 level Intraday. However, it broadly traded in a range. On the downside, the 1.1320-00 area holds a lot of importance as if the Euro sellers manage to pierce it, then more losses are likely moving ahead.
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UK Nationwide Housing Prices highlighting the value of the houses prices in UK and indicate current movements in the housing market posted an increase of 1% in April, compared to the preceding month.
US dollar continued to weaken against a few currencies and managed to recover some ground against currencies like the Euro and the British Pound
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