Anthony Wu | Mar 17, 2015 08:12PM ET
The FX market calmed down before the FOMC meeting, which will be held tomorrow morning Australian time. The USD index is moving around 100 as bets on stronger USD were only partially closed. The main forecast is still expecting Fed will delete ‘patience’ in the statement and pave the way for rate hike at June. However, the major risk now is Fed’s concern on the aspect that strong Dollar will pare the US economic recovery as recent data is not that satisfactory, except for the job market. In that case, we will see a major retreat of the Dollar, and the bulls shall realize that risk.
Euro Dollar rebounded to 1.0650 among the profit-taking orders, but still closed below 1.06 at this early morning. The pair will probably remain sideways in a limited range before the FOMC statement. 1.0760 and 1.05 are the critical levels of EUR/USD.
On the data front, Bank of England will release its March meeting minutes at 20:30 pm AEDST along with the job market data. Fed will release their March monetary policy, which will attract all the focus at 5 am tomorrow morning AEDST.
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