Thursday, 20 June 2013

Federal Market Committee outcome: dollar rises



Forex news from Federal Market Committee did have significant impact yesterday. Dollar regained almost half that it lost in a matter of a few trading sessions. FED gave a very clear signal that it will end this stimulation program quite soon. No wonder stocks fell, gold and silver collapsed and dollar rose. Technically it was all clear: Pound and Euro had already made to their resistance. 

One thing is not sure and that is what would be to the downtrend in Japanese Yen. It looks like it is not over yet. Various Yen pairs are taking out their resistance level, which means that Japanese Yen will continue falling. If the momentum does not stop here we are going to see new lows in eur/usd, gbp/usd and new highs in usd/jpy pairs. 

Tomorrow Canada CPI is released. That should set the tone for Canadian dollar pairs for the upcoming week.

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