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BOJ Steady, Markets Await FOMC

By Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked with...

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Today is a day bringing important information from three major central banks.

A short while ago the Bank of Japan gave its Monetary Policy Statement in which it made clear that it was making no changes to monetary policy at all. The only statement of note was that it is now a little more upbeat on growth prospects for the Japanese economy. As there were no meaningful changes and the market was expecting an uneventful announcement, there was little effect on the relative value of the Yen.

The market now turns its attention to the Bank of England, which will be releasing some data shortly after London opens for business, most importantly the details of the voting in its Monetary Policy Committee. However it is extremely unlikely that this will produce any surprises. The Average Earnings Index and Claimant Count data are likely to be the object of more realistic scrutiny.

Finally, towards the afternoon in New York, the Federal Reserve will be releasing the FOMC Meeting Minutes from its most recent meeting. The text will be closely watched as the market attempts to determine the time frame which the consensus within the FOMC has in mind for raising the interest rate. If it is seen as sooner rather than later, say during the summer, this may give some impetus for a renewal of USD bullishness. Although the market consensus is for a rise to occur in the summer, there is an increasingly strong opinion which sees it as more likely to happen towards the end of 2015.

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

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