Stronger than expected U.S. ADP numbers reassured investors that the central bank won't say anything particular damaging to the U.S. dollar. In a few short hours, the Federal Reserve will deliver its monetary policy decision. Central bank meetings are traditionally one of the most market moving event risks for the forex market and based on the recent consolidation in FX, currency traders are waiting anxiously for a big announcement. Unfortunately they will need to keep on waiting because the Federal Reserve is widely expected to leave the size and scope of its Quantitative Easing program unchanged. There's even a good chance that the August FOMC statement will contain the same language as the June statement.
Kathy Lien
Managing Director
BK Asset Management
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