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.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.