Markets Stable ahead of FOMC Minutes

Daily Forex Fundamentals | Written by Crown Forex | Nov 19 08 07:42 GMT |

Today we see that the dollar is weak in the markets ahead of the FOMC minutes as yesterday Treasury Secretary Henry Paulson and Federal Reserve Chairman Ben Bernanke spoke regarding the $700 billion bailout plan but did not mention anything about the economic out or regarding interest rates. Also since the U.S. economy is scheduled to release housing data, this will further deteriorate the dollar in the market especially if the readings come in downbeat like projected to do so. The euro is gaining on the back of the federal currency as today the focus in the markets is on the housing data and the FOMC minutes from the U.S. economy since due to this will point out the direction of the dollar while the single currency takes the opposite way. The markets are trading in narrow ranges as the EUR/USD is currently trading at 1.2633 while recording a high of 1.2642 and a low of 1.2604. For the pair we see a support at 1.2600 while currently there is a sideway wave being formed. Like the euro, the pound is also trading in a sideways wave ahead of the data while the UK economy is scheduled to release their BoE minutes stating why interest rates were reduced by 150 basis points to 3%. The GBP/USD is currently trading at 1.4956 between the support of 1.4875 and the resistance of 1.4995 while recording a high of 1.4996 and a low of 1.4900. The yen was climbing versus the greenback due to anticipations in the market that U.S. legislation might not support automakers which crippled the demand for carry trades. Now we see the yen weakening against the dollar as the pair is trading at 96.95 while recording a high of 96.80 and a low of 96.31. For the pair we see a support at 95.85 and a resistance at 96.70. Crown Forex disclaimer:The above may contain information for investors/traders and is not a recommendation to buy or sell currencies, gold, silver & energies, nor an offer to buy or sell currencies, gold, silver & energies. The information provided is obtained from sources deemed reliable but is not guaranteed as to accuracy or completeness. I am not liable for any losses or damages, monetary or otherwise that result. I recommend that anyone trading currencies, gold, silver & energies should do so with caution and consult with a broker before doing so. Prior performance may not be indicative of future performance. Currencies, gold, silver &energies presented should be considered speculative with a high degree of volatility and risk.