Friday October 29, 2010 - 13:12:08 GMT
Share This Story
Forex Hound - www.forexhound.com
U.S. Dollar Mixed; Likely to Trade Rangebound
The Greenback is trading mixed this morning as investors
prepared for next weekâ€™s U.S. Federal Open Market Committee Meeting.
Next Tuesday and Wednesday the U.S. Federal Reserve meets to
set its monetary policy. Traders expect the Fed to announce a second round of
quantitative easing. Strong speculation that the Fed will implement another
asset buying program has been in the market since early August. Traders arenâ€™t
focused on the event at this time as much as they are focused on the actually
amount of money the central bank will pump into the economy.
For months traders have been driving the Dollar lower in
anticipation that the Fed may inject as much as $1 trillion into the economy.
Earlier this month Fed Chairman Bernanke confused traders by saying the Fed may
use other monetary tools besides quantitative easing. This helped the Dollar to
bottom as investors pared short positions.
This week began with the Wall Street Journal saying that the
Fed may only use a quarter of billion dollars instead of the trillion. This
news helped support the Dollar. Finally, on Thursday, a report surfaced that
the Fed sent out a survey to dealers which suggested uncertainty about the QE
plan while questioning the Fedâ€™s credibility. Needless to say, the Greenback
gave back all of its gains from the previous day.
All of this news adds up to confusion and uncertainty a few
days before the Fed meeting on November 2 and 3. Look for institutions and big
traders to remain on the sidelines until the Fed announcement, thereby setting
the market up for a likely sideways trade.
Forex Trading News
Daily Forex Market News
Forex news reports can be found on the forex research
headlines page below. Here you will find real-time forex market news reports
provided by respected contributors of currency trading information. Daily forex
market news, weekly forex research and monthly forex news features can be found
Real-time forex market news reports and features providing
other currency trading information can be accessed by clicking on any of the
headlines below. At the top of the forex blog page you will find the latest
forex trading information. Scroll down the page if you are looking for less
recent currency trading information. Scroll to the bottom of fx blog headlines
and click on the link for past reports on forex. Currency world news reports
from previous years can be found on the left sidebar under "FX Archives."