Markets are in a stand-by position on Wednesday as investors are waiting the highly anticipated Fed’s meeting with its main highlight- a possible decision on the future of the U.S. asset-purchase programme. Chart movements on the Forex market are in a relatively tight range this morning in opposite to rather turbulent session yesterday. Tuesday’s market session was thin due to participants waiting for the FOMC decision; however the release of important economic data caused some serious stir.
The EUR/USD reached an intraday low at 1.3332 before climbing to 1.3409 later in the day. This morning the pair is hovering around its yesterday’s high, trading at 1.3390 at the time of writing. The single currency also rose against the yen and the British pound, being supported by ZEW survey results on German Economic sentiment, which showed an improvement in June with an actual reading of 38.5.
The dollar is trying to gain momentum against its major currency counterparts for a second day in a row amid speculations about the possible outcome of today’s Fed meeting. The greenback has been going through a series of consecutive declines since mid May and even lost ground against the deliberately weakened yen.
Commodity currencies fell slightly with bigger declines registered in the AUD/USD pair on reports that the Reserve Bank of Australia forecasted a continuing decrease of the currency due to falling prices of export production and possible new cut of the key interest rate.
The British pound came under serious sell-offs yesterday after the Bank of England minutes showed that some board officials support an increase in the easing monetary policy measures. This morning the sterling is a bit higher, trading at 1.5630 against the dollar.
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