Forex Strategy: Mixed FOMC Forecasts Prevent Dollar Breakouts

By DailyFx | June 18, 2014 AAA

DailyFX.com -

Talking Points:

• The FOMC Tapered as expected, but the economic and rate forecasts were mixed

• Majors like EURUSD and GBPUSD were ready for a clear read to force a specific directional break

• The Fed is still on track to outpace the ECB, BOJ and RBA with hikes; but the dollar is emboldened

Sign up for the waitlist to recieve the FX Real Volume and Transactions indicators when they become available again.

Watch the recording of John Kicklighter's coverage of the FX market's reaction to FOMC rate decision. An unspoken role of central banks is to curb market and exchange rate volatility that may arise from their policy efforts. On that front, The Fed and Chairwoman Janet Yellen were quite successful. Though the lean towards the wind down in QE and eventual return to rate hikes remains in place, the market was slow to respond to the event. Meeting expectations now leaves the dollar and markets in a precarious position with high-level technical potential without a clear catalyst.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Related Forex Analysis
  1. GBP/USD claws to 1.6100 ahead of Europe
    Forex News

    GBP/USD claws to 1.6100 ahead of Europe

  2. EUR/USD glued to 1.2755; triggers are wanted
    Forex News

    EUR/USD glued to 1.2755; triggers are wanted

  3. Asia recap: most majors are still sleeping in a ranges; JPY is weakening
    Forex News

    Asia recap: most majors are still sleeping in a ranges; JPY is weakening

  4. Gold Struggling Below $1250, SPX 500 Trying to Retake 1900 Figure
    Forex News

    Gold Struggling Below $1250, SPX 500 Trying to Retake 1900 Figure

  5. US Dollar Technical Analysis: Stalling at Channel Support
    Forex News

    US Dollar Technical Analysis: Stalling at Channel Support

Trading Center