The Fed cut policy rates

The dollar trading today

• The dollar ended at low, begin to decline in Asia • The Fed cut interest rates, but only 50 BP • The stock market remained strong

Night view

• The USD will consolidate • Should be a quiet evening session, given the data coming tomorrow

By Thursday All times EASTERN (-4 GMT) • 8:30 am, USD Advance GDP q / q • 8:30 am, USD Advance GDP Price Index q / q • 8:30 am, Kroszner member of the FOMC, will speak • 8:30 am, USD Unemployment Claims • 10:35 am, USD Natural Gas Storage

Currency Market

The dollar ended the day lower, but still volatility in the market, many traders moved positions to sell dollars, and the lack of volume exaggerated the move. The USD / CAD fell over 400 points, the lowest in the area of ​​1.2124 and then reach the 1.2200 area. The market situation is delicate, and the value of oil is estimated that support the Loonie and the Euro during the day. The euro traded at the 1.3000 area, and highs in the 1.2993 area, then fall when volatility fell, the pair recorded in the values ​​of 1.2800 for a certain period. Fears of global recession, plus possible market intervention limited the increase in the value of the yen, however, the center of the scene today was the statement by the FOMC interest rate. As was expected, the Fed reduced benchmark rates, but expected a further cut of 50 BP, several operators said they were "disappointed? been waiting a further cut, but this provides the possibility the Fed cut rates in the future if necessary.

The stock market rebounded. The DJIA ended with slight gains. In my view the major currencies are now bottoming out, an investment should happen soon. I would advise selling the dollar does rebound. The pound rose to 1.6400 and closed firm. The dollar may be corrected by the end of the week. It is estimated given a quiet evening session GDP data ahead. Since the data was negative, the dollar may fall.

GBP / USD

Resistance 3: 1.6650 Resistance 2: 1.6580 Resistance 1: 1.6500 New York: 1.6400 Support 1: 1.5400 Support 2: 1.5250 Support 3:? Forex volatility declined slightly. The pair stood at new levels of resistance. You may even rebound, but high volatility reigns. Aggressive traders can buy now, but expect high volatility. Several traders took profits and sovereign states were on the scene, with respect to the pound and the euro. And above all Middle Eastern traders. Thursday: All times EASTERN (-4 GMT) 3:00 am, GBP Nationwide HPI m / m 8:01 pm, GBP GfK Consumer Confidence EURO / USD Daily Resistance 3: 1.3100 Resistance 2: 1.3050 Resistance 1: 1.300/10 New York: 1.2957 Support 1 : 1.2330 Support 2:? Support 3:? Comments The pair began to rebound. It is advisable to buy now. The pair is a point of purchase. You can pick the pair. The improvement in the stock market helped to improve the contribution of the pair. The pair came under pressure and it is advisable to buy. It looks more volatility. Oil also added pressure but the pair remained firm, if oil picks can you take the pair with it. Double Action is awaited.

They were overnight this time. Thursday: All times EASTERN (-4 GMT) 4:55 am EUR German Unemployment Change EUR Consumer Confidence 6:00 a.m.

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