The U.S dollar continues to stay strong against most currencies in the last trading days, as it seems tha5t investors are reluctant to be optimistic without a new stimulus from the U.S Federal Reserve. Today’s FOMC (18:00 GMT) might shed light if, how and when such a monetary easing will happen.
On the European front, markets still price the European debt as problematic with Italian yields above 6% and with Spain granted another year of grace before reaching its deficit reduction targets.
Key fundaments in focus today
14:30 U.S crude oil inventory
18:00 U.S FOMC Minutes
The euro is expected to continue its down trend, short term resistance is at 1.229 and 1.232, and are recommended as strong sell signals. We expect to test the 1.2 as the next target price.