Currency market in anticipation of Fed meeting

Currency market in anticipation of Fed meeting

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Euro on Wednesday , March 19 , kept calm and 14:30 MSK reached U.S. $ 1.3920 , the euro / dollar more than a week trading in a narrow range. Previously predicted breakthrough quotations above the psychologically important level of 1.4 dollars . / Euro has not yet taken place, so that many economists have come to see the euro / dollar pair is neutral , which move from place may perhaps that big news like the Fed’s decision , analysts say Optionova.

Once weakened geopolitical risks , the currency market focused on the key event of the week – the U.S. Federal Reserve meeting , which ends March 19 evening , experts say “Alpari” . “This will be the first full meeting of the Fed under Janet Yellen , and from her speech on its results much depends. Not increase if the new head of the regulator in this time scale reduction program QE3, to compensate for a two-month break? How exactly Dzh.Yellen examines the current situation in American economy , and specifically on the labor market and in inflation? ” – Says the analyst “Alpari” Anna Bodrov . Answers to these questions , at least partially , we obtain at 22:00 MSK .

While the key pair of the currency market is held close to the mark of 1.39 usd . / Euro , and opportunities to respond to the Fed’s decision to have her very much. Any positive by the U.S. regulator and an indication of greater than anticipated reductions of QE3 will be perceived by market participants as a signal of improvement in the U.S. economy and, therefore, will play in favor of the dollar . Unlikely before the announcement of the Fed decision , the euro / dollar will show significant movement in one direction or another , said A.Bodrova .

Optionova experts believe that in the case of passing the mark of 1.3966 usd . / Euro pair continues to move in an upward trend that began in the area of ​​1.2755 . Psychologically important resistance level is 1.4 dollars . / Euro. Nevertheless, among the traders dominate ” bearish” sentiment . Breakthrough quotations below 1.3833 usd . / Euro point to the short-term strengthening of U.S. currency to 1.3772 . Stronger support is at around 1.3642 usd . / Euro , and from the rally can start a new pair. But at the same time , as the experts Optionova, strong upside momentum prospects do not look very convincing. At least , the sequel to ” bullish ” trend in the pair is only possible in the medium term . Maximum that can be achieved in the near future , is not above 1.4423 usd . / Euro , and then with a high probability of the reversal .

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