Dollar bounce pre FOMC

On currency markets the dollar enjoyed something of a bounce against the yen Tuesday, pushing back towards 112 yen ahead of the conclusion of the Federal Reserve’s latest policy meeting.

Dealers will be hoping for some guidance from Fed boss Janet Yellen on its plans for interest rates and when it will start winding in its bond holdings balance sheet, effectively sucking cash out of the market.

While there is really no way of knowing what they will do, the “latest chatter suggests the (Fed policymakers) may tip their hat to September the starting date for reducing the balance sheet”, Stephen Innes, head of Asia-Pacific trading at forex firm OANDA, said in a commentary.

France 24 via AFP

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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes