Finally, the FOMC leaved rates unchanged, and despite some initial spikes, more majors are quite close to were they were previous to the release. In fact there was no signal of further rate cuts anytime soon, and ignoring actual markets turmoil, they stated “The downside risks to growth and the upside risks to inflation are both of significant concern to the Committee”. Seems rate movements are not enough to control actual crisis and authorities had understood so. So what’s next in Forx market? Well to be honest I keep on believing that dollar strength was due to counterparts weakness, so the name of the game will be to bet on the less weak currency (mostly like we vote our government here, not the best one, but the “less worse”
). Anyway, is clear that the crisis in the States is very very far form over, while the economic situation in the rest of the world was lately put in doubt, yet remains in much better shape. Both technically and fundamental perspective suggest more dollar loses for the rest of the week.
Previously posted levels are quite valid for today and tomorrow: only under 1.4080 zone we could see the Euro fall, and 1.7785 area for GBP. An exception is my be loved Japanese Yen that actually accomplished perfectly the suggested upside levels, and seems ready for more.
Anyway, the day is almost over. Hope you have enjoy the post, the live coverage, and most of all, took some advantage of the market!
See you tomorrow.
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