18 Jun 2014
USD could strengthen on hints of early Fed rate hike - FXStreet
FXStreet (Łódź) - FXStreet Chief Analyst Valeria Bednarik notes that the EUR/USD is grinding higher early in Europe, albeit as usual confined to a quite tight range around 1.3550 ahead of the Fed monetary policy decision to be announced later today.
Key quotes
"Market expectations are of a $10B cut in QE taking it down to $35B, which won’t trigger much reaction across the board, as per being no surprise. If the FED changes the amounted trimmed on the other hand, things will become more interesting and volume will be present for a couple hours."
" The following statement will also be watched, with market players looking for clues of when rates can be moved: the sooner the rate hike, the stronger the dollar."
"Technically, the pair maintains a strong neutral tone, with intraday levels to watch at 1.3580 to the upside, as once above the rally can extend up to 1.3640/50, and at 1.3510 to the downside, as once below, a quick run towards this year low of 1.3475 should be expected."
Key quotes
"Market expectations are of a $10B cut in QE taking it down to $35B, which won’t trigger much reaction across the board, as per being no surprise. If the FED changes the amounted trimmed on the other hand, things will become more interesting and volume will be present for a couple hours."
" The following statement will also be watched, with market players looking for clues of when rates can be moved: the sooner the rate hike, the stronger the dollar."
"Technically, the pair maintains a strong neutral tone, with intraday levels to watch at 1.3580 to the upside, as once above the rally can extend up to 1.3640/50, and at 1.3510 to the downside, as once below, a quick run towards this year low of 1.3475 should be expected."