Vekslers Forex Blog

Will Ben or won't he pull the FOMC trigger tonight?

Ken VekslerKen Veksler , Director, Accumen Management
United Kingdom, 25 April 2012 at 09:22 GMT+0
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News and action overnight, non-existent.

First thing this morning we’ve just had the UK advance Q1 GDP print, and shock me, it confirms the nation is indeed back in a recession. The reaction of the Cable? Naturally it goes nowhere, well alright a 40 point sell-off initially, but then someone is bidding this nasty piece of work with great enthusiasm at 1.6080/90 and we remain trapped, clearly now awaiting tonight’s Federal Open Market Committee meeting outcome.

Elsewhere, folks, it’s just dead. Nothing is really moving and everyone is waiting for the potential spurt of activity around tonight’s statement from Federal Reserve Chairman Ben Bernanke.

EURUSD is fishing for 1.3230 stops and might just get them on a RHS fix this afternoon, but it should settle down ahead of this evening and look for 1.3170/50 on the wide to hold the downside.
The AUDUSD is looking for 1.0350, stops just above best bet we might see 1.0380 on the day but don’t hold your breath...

Level’s haven’t changed in recent days/weeks and chasing 20 points and a spread is just like self harming to get attention from neglectful parents, useless...

Interesting piece in the Wall Street Journal  pretty much confirms everything I’ve been saying for the last two months or so, the only delight I get out of it, is that I’m not alone in this sentiment.

By now you all know how I feel about tonight’s event and the likely impact it should have, a knee jerk USD sell reaction, SPX higher (thanks Apple) and then we settle down within four hours back to the boredom we’ve all been living for the last two months.

So with that I leave it for today and wish you success in your helmet reinforcement.

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