Traders around the world will start to speculate on Tuesday and Wednesday as to what the US Fed will say when it releases its latest policy statement at 4am AEDT Thursday morning. The market is expecting the Fed to wind back the last remaining $15 Billion a month of its QE program and thus mean the US Fed is no longer printing money. The market also expects the US Fed to give us some indication on what its forward guidance is on interest rates for 2015.
Unless the US Fed hoses down the economy this week when it announces its policy statement and Yellen openly suggests a rate rise in 2015 isn't going to happen, I suspect the US Dollar will continue to gain strength for the rest of 2014. There is the obvious world growth concerns but the US has been growing and hiring without the assistance of the rest of the world.
Don't trade with your economic eyes closed, look ahead, see what's coming and plan your trading week starting today.
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