The Most Anticipated Week?

So here we are, in the beginning of what is probably one of the most anticipated weeks of the year. A week that could see a lot of volatility. A week that could set the tone for the price action of many currency pairs in the coming months. A week that could see a small part of an increasingly confused market getting disappointed. A week when we have the FOMC statement for September.
The data from the US in last week was an increasingly jumbled one with one set showing that the economy in the US was strengthening while the other set showing that the economy was not out of the woods yet. This held the euro within range, as was expected but the pound took, well, a pounding on Friday which saw it fall close to 250 pips on a single day as the euphoria of better data from the UK began to slowly taper off.

This morning has been generally quiet with the Chinese and HK markets back online after a holiday but the Japanese markets on a holiday instead. The USD strength that was seen last Friday had a small correction in the morning but the markets continued to range, with a bearish tone. You can rest assured that the market will not be a slumber this week with the FOMC statement when a small section of the market, wrongly in our opinion, expects them to raise rates and the RBNZ also meeting though they are expected to hold rates as well.

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