Talking Points:
• The USDollar has worked its way into extremely tight - and very combustible - congestion pattern
• A high-profile FOMC decision can help generate a break for USD pairs and broader risk-based markets
• Yen crosses direct Fed impact candidates; but watch Euro, Pound and Kiwi for event risk as well
Sign up for a free trial of DailyFX-Plus to have access to Trading Q&A's, educational webinars, updated speculative positioning measures, trading signals and much more!
The end of the most recent bout of market congestion may be Fed-derived - regardless of their efforts. Tight trading ranges on pairs like EURUSD and benchmarks such as the S&P 500 are in large part reflections of uncertainty for establish trends and deference for crucial fundamental themes that seem at hand. General speculative sentiment would be the outcome while events like the Fed rate decision and Greek debt negotiations are the catalysts. The quickly dwindling window for a 'happy' Greek-Eurozone resolution certainly taps the systemic fear that can span the global markets, but its time frame isn't particularly clear cut. In contrast, the Fed decision will tip the scales one way or the other at a precise time today (18:00 GMT during the New York session). There are short-term volatility opportunities under various scenarios and longer-term trends that can develop with specific outcomes. We look at the key event risk and the markets on alert in today's Trading Video.
Sign up for John’s email distribution list, here.
