Forex: Dollar Breakout Inevitable as Market Readies for FOMC
• USDollar has worked its way into a position where a breakout is inevitable - follow through or not
The markets are offering mixed messages between a rise in 'risk appetite' measures, headlines that point to growing uncertainty and a USDollar on the verge of a break. This is a good time for the FOMC rate decision. A heavy event risk like the US central bank policy meeting can tap into both risk and monetary policy themes to restore a common drive to the broader financial markets. With the S&P 500 feigning a rebound, USDollar in a make-or-break position and EURUSD building pressure below 1.4000; reengaging the markets under a common banner is a high probability. Meanwhile, as we await the winds of risk and policy, certain currencies have made provocative moves of their own including the GBP, AUD and NZD. We discuss the potential heading into the upcoming session and the catalysts that can turn it kinetic in today's Trading Video.
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DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.