The Asian market shares were mostly mixed during early forex trading on today, while the Greenback held steady ahead of the Federal Reserve decision later today which is largely expected to conclude with monetary policy unchanged.
With it already being considered a foregone conclusion that US interest rates will be left unchanged in July forex trading and no press conference scheduled by Janet Yellen, today’s FOMC meeting is likely to be a non-event.
Although the absence of a press conference and no new summary of economic projections may take away a chunk of the excitement, investors most probably will use this opportunity to closely scrutinize the policy statement for clues on the Federal Reserve’s tightening plan.
Many questions still remain unanswered over both the timings and pace of rate hikes which may weigh on the minds of Fed watchers ahead of the rate decision.
Forex Markets will also be paying very close attention to see if the policy statement offers any fresh details on how and when the Federal Reserve plans to normalize its $4.5 trillion balance sheet.
Any unexpected surprises from the policy statement may come in the form of inflation concerns as the central bank acknowledges the fall in inflation and the impact it has on reaching their 2% inflation target.