FOREX Market Trend with Forecast for Today

Activity in the foreign exchange market has fallen markedly. All European currency traded almost unchanged, while the Australian and New Zealand dollar fell, especially the Australian currency amid a lack of clear signals of rising interest rates and the probability of a "hard landing" of the Chinese economy, which is quite involved trade of Australia and New Zealand. Today, the market will scrutinize the publication of the last minutes of the Fed, which tries to find the signals related to the timing of prospects start raising rates. The U.S. stock market is already quite vigorously responds to these likely changes in the attitudes of the Fed, especially in light of recent data on consumer price inflation, which showed that inflationary pressure is gradually increasing, which of course can also have an impact on the Fed. Major stock indexes rebounded from their maximum values​​. We can assume that today the latest data on inflation and also comment on the Fed chairman J. Yellen, and any hint of it some time start tightening monetary policy will lead to higher volatility. If she says today that, despite recent strong data from the labor market and inflation rates will be for some time to be boundless at low levels, it will have a local pressure on the U.S. dollar. At the same time the words that terms of rate hikes will be shifted to the beginning of the next in 2015, on the contrary, will support the dollar. Today, market participants will also closely monitor the data from the UK and the eurozone. Strong statistics on retail sales in the UK, as well as optimistic about the prospects for a rate hike Minutes of the last meeting of the Bank of England, support sterling. At the same time, weak data from the euro zone will have a local downward pressure on the euro.

Forecast Today: EURUSD before the publication of the minutes of the meeting of the FED is likely to consolidate between 1.3685-1.3730. AUDUSD pair remains under pressure because of lowering expectations increase in long term interest rates and a hard landing of the Chinese economy. The pair broke the support level 0.9250 and can now continue its decline to 0.9180, bottom of the short-term downtrend, if it does not rise above the level of 0.9250.