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Major currencies are ready for the Fed`s decisions

January 28, 2014

The currently witnessed trading levels for major currencies are indicating that traders are getting ready for new financial positions after the Federal Reserve announces the results of its meeting this week. Financial markets are expecting further reduction in monetary stimulus which is going to affect trading levels. Economists say the Federal Reserve will continue to withdraw stimulus measures from markets, after it was cut by $10 to a monthly $75 billion in its last meeting. Despite negative data were seen from the labor market, fundamentals released from the U.S. economy remains stable, giving a chance for monetary policy makers to continue with withdrawing stimulus. Moreover, yen declined again against dollar and other majors ahead of Fed`s meeting, after momentum indicators moved from the overbought area, which is giving a space for more declines to be seen along with a large difference between the American and Japanese monetary policies. USD/JPY rose since the beginning of this week to record a high of 102.92 and the pair is currently hovering around 102.65. Euro also picked up against its Japanese counterpart to record a high of 140.68 and the pair is currently trading around 140.34. AUD/USD gained to move from the overbought area in different time scales, having the pair recording a high of 0.8767, after today`s session opened at 0.8729. The Australian dollar gained against yen to record a high of 90.02, while the pair is currently hovering around 89.80.

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Source: Financial Markets

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