USDJPY Range Better Option than EURUSD Swing in Fed Lead Up?
The financial headlines were dotted with updates that undermine the fundamental strength the Euro derived from last week's ECB bond program announcement. And yet, both EURUSD and S&P 500 refrained from aggressive corrections. Rather than taking this as a sign of overriding confidence in the Euro, we are more likely seeing the weight of speculation heading into the Fed's rate decision. Just as likely that we see heavy volatility (perhaps trend generation) with the key policy outcome, we will find market's are deadened to most developments outside of this focus. That means that swing setups with EURUSD, EURJPY and AUDUSD carry more baggage than pairs that have some distance to traditional risk: like USDJPY, EURGBP and AUDCAD.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.