While European stock markets operate with very moderate gains, the euro has a very bullish behavior these hours.
The rise of the euro has a lot of speculation resembles, in the hours before the Fed's announcement on monetary policy, which will take place at 12:30 ET.
No changes are expected according to interest rate. But the expectation is that Bernanke will announce a further injection of money, more important now.
The other major currencies move in upward direction from the Asian session, but with less intensity than the euro. The pound has an upward trend in the short term, although it appears to be overbought, which could indicate a correction in the opposite direction, before the announcement of the Fed.
The Australian dollar has surpassed several important highs and is at its highest since mid-September. As the pound is overbought and may experience some corrections before continuing its upward trend.
The yen continues falling with an improvement in the overall business climate and with the impending announcements to stimulate Japan's economy by the BoJ. The objective of the USD/JPY is located, for the rest of the month, at the level of 84.50.
Following data is to be noted at 10:30, oil inventories in the United States. The WTI barrel back to about $87 and currencies linked to it, such as the Mexican peso and the Canadian dollar. The loonie, however, left on Monday at 0.9910 gap which, in our opinion, will be covered before the weekend.
The material has been provided by Instaforex Company - instaforex.com
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