Strategy Video: EURUSD and GBPUSD Top Trade Risk for FOMC

By DailyFx | Updated July 30, 2014 AAA

DailyFX.com -

Talking Points:

• The upcoming FOMC meeting will present greater market potential than usual with forecasts and a presser

• A further Taper is fully priced in, the market is looking at interest rate forecasts to speculate on

• EURUSD and GBPUSD combine larger technical patterns and recent ranges to amplify trade risk/opportunity

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The dollar has set itself within narrow ranges on many of the majors, presenting a serious volatility and breakout risk on the FOMC decision. For influence, this event taps the market's primary fundamental themes: investor sentiment that has been driven to complacency on cheap funds and the relative influence of interest rate forecasts. In this event, the Taper is not the market's biggest question mark. Rather the quarterly meeting's update on interest rate, inflation, growth and employment forecasts along with Janet Yellen's press conference can feed speculation surrounding the timing of the first Fed hike and the pace of subsequent moves. With a look to all of the majors - but particular interest in EURUSD and GBPUSD - we discuss this event in today's Strategy Video.

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