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18 Sep 2013
EUR/USD flat around 1.3360
FXstreet.com (Edinburgh) -The shared currency is trading almost unchanged vs. the greenback on Wednesday, with the EUR/USD orbiting around 1.3360 ahead of the FOMC meeting.
EUR/USD all eyes on the Fed
The pair keeps the recent reduced range between 1.3340 and 1.3380, as markets get closer to the key FOMC gathering due in the European evening. In addition, with consensus pointing to a close call today, the cautious tone looks set to prevail until the release. Alvin Pontoh, Macro Strategist at TD Securities, commented, “The amount of tapering, however, may prove to be the least relevant because it is already priced in. Forward guidance is key as 2016 SEP forecasts loom, and we see a slightly more than even (55%) chance of the 6.5% unemployment rate threshold for hiking rates being lowered to 6.0%. However, the Fed will be at pains to emphasize that tapering is not tightening, and that the path of future tapering is data-dependant”.
EUR/USD levels to watch
At the moment the pair is losing 0.02% at 1.3355 and a break below 1.3326 (low Sep.17) would target 1.3298 (low Sep.16) en route to 1.3262 (MA10d). On the upside, the first hurdle aligns at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21).
EUR/USD all eyes on the Fed
The pair keeps the recent reduced range between 1.3340 and 1.3380, as markets get closer to the key FOMC gathering due in the European evening. In addition, with consensus pointing to a close call today, the cautious tone looks set to prevail until the release. Alvin Pontoh, Macro Strategist at TD Securities, commented, “The amount of tapering, however, may prove to be the least relevant because it is already priced in. Forward guidance is key as 2016 SEP forecasts loom, and we see a slightly more than even (55%) chance of the 6.5% unemployment rate threshold for hiking rates being lowered to 6.0%. However, the Fed will be at pains to emphasize that tapering is not tightening, and that the path of future tapering is data-dependant”.
EUR/USD levels to watch
At the moment the pair is losing 0.02% at 1.3355 and a break below 1.3326 (low Sep.17) would target 1.3298 (low Sep.16) en route to 1.3262 (MA10d). On the upside, the first hurdle aligns at 1.3399 (high Aug.28) ahead of 1.3410 (high Aug.23) and then 1.3427 (high Aug.21).