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EUR/USD Signal - FOMC Meeting - 01 Feb 2017

Signal details
Entry Price: 
1.0750
Close Price: 
1.0769
Direction: 
Low
Expiry Time: 
21:00 GMT
Result: 
OTM
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The U.S. Federal Reserve will be concluding its two-day monetary policy meeting today. No changes are expected as the FOMC board is likely to decide in keeping the short term fed funds rate unchanged at 0.75%. There is no press conference today, which further adds to the consensus that policy will be unchanged.

The CME group's Fed fund probability tool assigns a less than 5% change of a rate hike. In the absence of any policy changes, focus will turn to the monetary policy statement, which could set the tone for the March FOMC meeting, where the prospects for a rate hike currently stands at 20% currently. The dollar is hit by dovish comments from the U.S. administration and it is likely that the Fed will come out hawkish today.

EURUSD is likely to remain biased to the downside on an intraday basis and warrants a daily PUT option with a strike price around 1.0750 for a 21:00 GMT expiry time. In the near term, EURUSD could be seen pushing lower to retest the support at 1.0600 at the minimum although the medium term bias is turning bullish.

Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. He has no business nor personal relationships with any mentioned government entities or stocks. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion.