USD/JPY pops
Short-term speculators are no-doubt short the US dollar so some position squaring early today into the FOMC decision make sense. We're also closing in on month-end so flow driven trades are going to be a factor.
The Fed decision is at 1800 GMT with Powell 30 minutes later. I'll be looking for commentary on the economy as the top market mover. If it's negative, the Fed will have to offer more strong hints at easing to keep the equity babies bulls at bay.
Other economic data today is a mish-mash of second tier data including:
- US trade balance (advance goods)
- Wholesale inventories
- Pending home sales
- Weekly oil inventories.
