Forex Analysis

Fed preview: softer tone on inflation but bar for QE4 is high

At Wednesday’s meeting we expect the Fed to do the following.

The Euro overnight has not clawed out a higher high on the charts as the trade is somewhat discouraged with

The short term trend in the Swiss is pointing upward as tensions between Russia and

The Yen remains vulnerable on the charts and generally positive equity market gains overnight would seem to

While the Dollar is showing some modest early strength to start today, the currency has largely remained within the prior session’s trading range.

The December Canadian has regained a four month old down trend channel resistance line at 89.01.

The Pound is begrudgingly benefiting from the quasi-risk-on vibe this week.

A slower China and strong commodity supply are consistent with a lower AUD The house GDP growth forecast for

The USD continued to weaken, albeit only modestly. The EUR ground higher to 1.271,

In the US, durable goods orders are due for release and consensus is for an increase of0.5% m/m in September.

The relief coming after the ECB stress tests proved very short-lived, as a weak German Ifo reminded that the remaining problems were large.

The pair was Supported by stronger-than-forecast CBI Retail Sales data on Monday which saw the rate lift to