Interest seems to be waning as the market prepares for the latest FOMC statement at 2:15 Washington time, just under three hours from now. EUR/GBP is the most active of the pairs at the moment as prices rebound from the 0.8480 level. EUR/USD is hanging onto support in the 1.4000/10 area, the former range tops until price blew up about 24 hours ago. Stops are perched below those levels if prices slip away.
Dealers are looking for the FOMC to play their cards close to their vest. No additional bond-buying is expected to be announced nor is any move to restrict liquidity anticipated. The bond market would appreciate some exit-strategy specifics, but they are unlikely in this forum. I don’t expect them to rock the boat at all in this statement.
EUR/USD trades at 1.4020, GBP/USD at 1.6490 and EUR/GBP at 0.8500.
