TRADING TIPS :
- Forex-USD/JPY edges higher, Fed statement in focus .
- Forex-Pound dips as dollar edges higher before Fed .
- Forex- AUD/USD rises to 2-week highs ahead of Fed .
USD/JPY hit 108.10 during European late morning trade, the session high; the pair subsequently consolidated at 108.04, adding 0.20%. The pair was likely to find support at 107.08, the low of October 23 and resistance at 108.73, the high of October 8.The U.S. dollar edged higher against the yen on Tuesday, as sentiment on the greenback became mildly stronger ahead of the Federal Reserve’s highly anticipated policy statement due on Wednesday. In Japan, data on Tuesday showed that retail sales rose at an annualized rate of 2.3% in September, beating expectations for a 0.6% gain, after a 1.2% increase the previous month.Investors were eyeing the conclusion of the Fed’s two day meeting on Wednesday for any indications that a slowdown in growth in Europe or China could prompt the U.S. central bank to delay possible rate hikes.
EUR/USD was at 1.2708, off Monday’s lows of 1.2664.The greenback remained under pressure amid concerns that recent signs of a slowdown in growth in Europe and China could prompt the U.S. central bank to stick to its cautious outlook on monetary policy . The dollar was little changed against the euro and the yen on Tuesday following declines in the previous session as investors looked ahead to the conclusion of the Federal Reserve’s two day policy meeting on Wednesday.Data on Monday showing that German business confidence fell to the lowest level since December 2012 this month added to fears over the outlook for fourth quarter growth in the euro area’s largest economy.The dollar slid on Monday after data showed that the U.S. service sector expanded at the slowest rate in six months in October, as new order growth slowed and business confidence declined.
1. Buy GBP/USD Above 1.6122-TG:1.6142/1.6172 SL 1.6082
2. Sell GBP/USD Below 1.6090-TG:1.6070/1.6040 SL 1.6120