The Fed hints that recession is easing and is expected to end treasury buying in October.
- Yesterday the Fed announced the conclusion of its two day meeting saying that they expect to end the program of treasury buying in October this year. They also kept the interest rate unchanged at 0.25% but also said that recession is easing.
- Earlier in the UK, BoE said that their goal of 2% inflation may not be met and that the growth will be even slower than before, which put more pressure on the British Pound.
- Oil rose over $70 a barrel this morning on the back of the news that economy is recovering, while most other majors traded in tight ranges.
Currency to watch out for: EURUSD & GBPUSD
EURUSD: Upside prevails
- Today's pivot point is at 1.4155 with a preference to enter into a long position at 1.4165 with 1.4250 & 1.429 as next targets.Â Â Alternatively, a break above the pivot point will open the way for 1.4120 & 1.4085.
GBPUSD: bias is bullish
- Today's pivot point is at 1.6450 with a preference to enter into long positions at 1.6460 with targets at 1.6575 & 1.6650.Â Alternatively, a break below the pivot point will call for 1.6390 & 1.6340
Today's calendar and market movers are the following:
- EuroZone GDP is expected to be out at 09:00 GMT and is expected to come better than last month at -0.5%
- US Retail sales for July is also expected to fall by 0.1% as opposed to 0.3% for June.
- U.S. Equities closed positive with DOW at 9361 and S&P at 1005
- The Nikkei 225 was up this morning by 0.79%