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Forex · News · Forex Forecasts

NEWS / Forex Forecasts

USDCHF,USDCAD Focus of market players’ attention is directed to FOCM statement after announcement of its decision...

21:24 06/28/2007

On a background of range trade before the announcement of FOMC decision on interest rates, a Japanese yen was in a role of the driver.

 

Let's remind that in experts’ opinion current three-day strengthening of yen rate is connected with the statement of Minister of Finance of Japan Omi who warned market players on "one-sided strategy ", meaning trade "carry and trade" on forex.

 

Let's notice that yen purchases are connected first of all, with closing by players their short positions on the Japanese currency before the publication of data on inflation in Japan.

 

We again remind that results of FOMC meeting will be known at 18:15 GMT and though overwhelming majority of analysts do not expect from today's FOMC decision about rates any surprises, however large players prefer to refrain from trading decisions.

 

The basic focus of attention will be directed to statement in which experts will likely try to find various semantic nuances for definition of FRS further steps.

Besides the report on individual consumption, which data will be used for the analysis of inflation prospects in the USA, will be interesting for economists. We remind that data on individual consumption for May will be published at 12:30 GMT.

 

Also market players will not ignore the publication of final value of GDP index in the USA for the first quarter 2007 at 12:30 GMT. We remind that the forecast of value of the indictor is equal to  +0.7 %, and the refined value was +0.6 %.

Besides players will pay attention to data on jobless claims in the USA for a week by 23.06. We remind that the forecast is 317 thousand for a week, +0.7 % for a year, and the previous value 324 thousand for a week, +0.6 % for a year.

 

As a whole, taking into account high risks before the announcement of FOMC decision concerning the rate, we suggest to keep waiting position.

 

 

 

 

 

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