Forex Market Trading May10 Preview

Forex Market Trading May10 Preview - I expect the market to be quiet tomorrow up until the FOMC rate decision at 14:15 EST. The majors should stay in tight ranges awaiting the decision.

Two possible reactions of forex market trading to the FOMC rate decision: 1. The FED keeps the terms used in earlier statements that are somewhat hawkish - positive for the usd.
2. They back down and suggest the the cycle of interest rates increases is nearly over.

There almost unanimous consensus that the FOMC will raise interest rates by 25 points at this meeting, so that is already priced into the dollar, so the focus will be as I said to the statements about future interest rates increases.

Another important event is the decision that forex market trading will be focusing on is -Will US label China as a currency manipulator? Report is due at 16:00. This report is more important for the usd-yen than the others.



Forex market trading may10 preview for the eur-usd pair.


So to sum it up,forex market trading may10 preview: expecting range trading until the reports, then will try to catch the first wave.