Wednesday June 24, 2009 - 10:45:08 GMT
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Tamley Global Markets - www.tamley.com
FOMC Meeting Under The Spotlight
- Weaker Dollar overnight
- Euro strengths amid ECB comments
- Focus on FOMC announcement today
The dollar fell sharply yesterday and maintained a weaker tone overnight as stock markets stabilized after Monday's sell-off and as markets look to today's US Fed meeting. The Euro has strengthened amid comments by ECB members yesterday that reinforced the view that rates in the eurozone have likely bottomed. The Euro has gained almost 2% against the US Dollar trading around the $1.4120 level.
The focus today will be the FOMC announcement, however markets don't expect any change in the current 0 to o.25% target rate. The attention will be diverted to the tone of the Fed statement. It will likely the main point of discussion will be in regards to the increasing focus in recent weeks on central bank exit mechanisms from current quantitative programmes and on the timing of an end to the current ultra low interest rate regimes. It is expected that the Fed will very cautions in the wording of its statement, in order to avoid sending any message about a possible interest rate hike which will weigh on the greenback.
With the absence of any domestic data, the sterling remained in a slow pace yesterday and was dictated by international trends. It fell against the Euro and recorded gains against the Dollar. We will look today for the CBI distributive trades survey for any direction.DISCLAIMER: This market research report has been prepared by Tamley Global Markets. The information herein has been obtained from sources believed to be reliable and although every effort has been taken to ensure that the assumptions on which the report is based are reasonable, we do not endorse that this is accurate or complete and it should not be relied upon as such. This report does not intend to be an offer, or the solicitation of any offer, to buy or sell securities referred to herein. All opinions and data herein constitute a Tamley Global Markets judgment as of the data of the report and are subject to change without notice.
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