Safe-haven currencies show signs of life
In European trading session on Wednesday, before FOMC announcement, safe-haven currencies such as the yen, the dollar and the franc began to show signs of life by strengthening against G-10 currencies. The pound remains the main favorite, which continues to grow after the publication of minutes from the MPC last meeting.
Forex analysts point out that the QE3 volume contraction in today's FOMC meeting is a solved question, and investors are just waiting for a particular number. If it is announced that a QE3 volume is contracted by at least $10 billion, the dollar will rise. If the figure is less, market participants will begin to doubt about the seriousness of the Federal Reserve to phase out stimulus measures and the U.S. currency will continue to fall in price.
It is possible that the FOMC may experiment by announcing that the volume of QE3 will be restored in case of rise of unemployment. Analysts believe that the USD/JPY will soon be up of the range Y98-102.
According to forex.lv