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Dollar Correcting Before Fed Meeting

The euro and pound have been strengthening against the dollar. The currencies are coming back to reality after the latest Brexit surveys (referendum to take place on 23rd June).

The euro has strengthened to 1.1235. The pound/dollar has restored to 1.4216 against yesterday’s 1.4089 minimum. The pound received a support from employment and wage data from the UK. The number of registered unemployed fell, with unemployment down to 5.0% (forecasted: 5.1%). Wage growth exceeded market expectations.

At 21:00 EET the results of the FOMC meeting will be clear. This is the key event of the day. The market expects the rates to remain in a 0.25-0.50% range.

30 minutes after the decision is released, Janet Yellen will begin her press conference. In July there is no press conference planned, so her comments will be very important for market participants. Volatility is expected to be high, so it’s unclear where the key pairs will close.

Trader attention on Thursday will be on the Bank of Japan’s and Bank of England’s meetings.


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