 Dollar is generally staying in familiar range, except versus Japanese Yen as markets await FOMC rate decision today. The federal funds rate is expected to be lifted by 25bps to 1.75-2.00%. There is practically no chance for Fed to disappoint the markets. Yet, there are a number of questions that could be answered by the voting, the statement, the press conference and the economic projections. A immediate one is whether Fed is on track for one or two more rate hikes this year. Further than that, we'd be keen to know where the neutral rate is in the board's minds. And, Fed could tweak the language to reflect that it's closer to neutral now. Technically, USD/JPY in on track to extend the rebound from 108.10 towards 111.39 resistance. AUD/USD's near term outlook is staying bearish as corrective rebound from 0.7411 should have completed at 0.7676. And deeper fall is expected to retest 0.7411 in near term. However, EUR/USD is holding above 1.1713 minor support for the moment and thus, could still extend recent corrective rebound from 1.1509. GBP/USD is also holding above 1.3341 minor support and UK CPI today could move the pair first. |
