Video: Amid Key Asian and European Event Risk, Focus Remains on FOMC
• China started the fundamental engine this week with key event risk that triggered a Shanghai Composite drop
• High level event risk will carry through the next 24 hours with a BoJ decision, RBA minutes and UK inflation
• Yet, the combustion of early week event risk is likely to be contained by anticipation of the FOMC decision
Event risk is already rocking and rolling to start the week, and there have been flare ups in different corners of the financial system. However, the systemic move that revitalizes the momentum of mid-August traders have been waiting for will likely remain elusive until later this week. Key event risk is due over the next 48 hours - including a BoJ rate decision, UK inflation data and US CPI statistics among other listings - but these milestones fall short of the girth needed to pull the reins on the entire financial system. Whether it ultimately proves capable or not, the anticipation for Thursday's FOMC decision is so intense that positioning in even non-direct exposure is being sidelined. We look at what is captivating the broader market's attention and where volatility will be more productive before Thursday's fireworks 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.