FOMC meeting preview: What to expect of USD

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Oct 28, 2015.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

    Oct 7, 2015
    Likes Received:
    FXStreet (Córdoba) - The Federal Reserve will announce its monetary policy decision at 18:00 GMT. While Chair Yellen and other FOMC officials have reiterated they expect the lift-off to happen before the year-end, analysts seem to agree October won’t be the case.

    There is no press conference or updated projections scheduled so statement will be closely scrutinized for signs on whether the Fed remains on track to hike rates in December. Some analysts are expecting a dovish tilt in the statement following a series of disappointing economic releases.

    However, no major changes to September’s statement are expected and in the absence of surprises the US dollar should exhibit modest and short-lived responses.

    EUR/USD levels to watch

    As for the EUR/USD, the upside remains quite limited amid divergent outlooks, specially after the ECB hinted at more quantitative easing last week.

    The key levels to watch on the upside are 1.1114 (200-day SMA), 1.1166 (100-day SMA) and 1.1210 (Oct 7 low). On the flip side, supports could be found at 1.1000/1.0996 (psychological level/Oct 23 low) followed by 1.0960 (Aug 11 low) and 1.0925 (Aug 10 low).

    Watch: Fed Interest Rate Decision Live Coverage with Valeria Bednarik, Mauricio Carrillo and Dale Pinkert
    For more information, read our latest forex news.

Share This Page

free forex signals