Currencies ahead of FOMC rate decision

By IBTimes Staff Reporter | January 27 2010 10:57 AM

The Federal Reserve Bank today is going to announce their interest rates in which expectations show will remain steady between the 0-0.25 percent, while also it is forecasted that the Feds will leave them unchanged for an extended period. The U.S. economy released its new home sales showing that they were worst than market projections. The Dollar Index, which usually measures strength of the dollar versus six major currencies, is currently traded at 78.53 while recording a high of 78.69 and a low of 78.36.

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The euro dollar pair is currently traded at 1.4043 between the support of 1.4000 and the resistance of 1.4145 while recording a high of 1.4096 and a low of 1.4020. The momentum indicators are providing us with a downwards trend while the pair is trading close to an oversold area, as the markets are awaiting the FOMC rate decision which will then provide movements in the markets.

The pound is climbing versus the dollar on anticipations that the Bank of England will begin to exit the APF program worth 200 billion pounds aimed at stimulating economic growth, this meant that improvement is taking place in the United Kingdom which encourages investors to turn to the pound. The pair is currently traded at 1.6197 while recording a high of 1.6243 and a low of 1.6105 as the charts provides us with a support of 1.6150 and the resistance of 1.6245.

The yen rose against the federal currency on speculation that the Feds will once again mention that interest rates will not be hiked anytime soon therefore reducing the appeal of the dollar. The USD/JPY is traded at 89.38 between the support of 89.00 and the resistance of 89.75 while recording a high of 89.71 and a low of 89.12.