Dollar Stronger Ahead of Tuesday’s Fed Meeting

The U.S. Dollar is trading higher at themid-session ahead of tomorrow’s FOMC meeting. In what is probably positionsquaring ahead of the Fed meeting; the Dollar is posting gains against allmajors. The biggest gain coming against the Swiss Franc. 

The U.S. Dollar is trading higher at themid-session ahead of tomorrow’s FOMC meeting. In what is probably positionsquaring ahead of the Fed meeting; the Dollar is posting gains against allmajors. The biggest gain coming against the Swiss Franc. The lack of fresheconomic news following Friday’s disappointing Non-Farm Payrolls Report is mostlikely a contributing factor to the Dollar’s strength.

On Tuesday the Federal Open MarketCommittee is expected to consider renewing its quantitative easing program byreintroducing its purchase of government bonds and mortgages. Some believe,however, that the Fed is only going to consider extending its monetary policyrather than making an actual change. Either way, investors will be keying in onthe language used by the Fed in its policy statement.

Look for the Dollar to gain over theshort-run if the Fed’s remains firm in its policy statement. Any softening inthe Fed’s tone will put pressure on the Greenback.

James A. Hyerczyk has been actively involved in the futures markets since 1982. He has worked in various capacities within the futures industry from technical analyst to commodity trading advisor. Using W. D. Gann Theory as his core methodology, Mr. Hyerczyk incorporates combinations of pattern, price and time to develop his daily, weekly and monthly analysis. His firm, J.A.H. Research and Trading publishes The Forex Pattern Price Time Report... More

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