The FOMC rate decision won't offer any changed to the Fed Funds rate, but the market will be kept busy watching the discount rate, possible changes to non-standard policy and closely interpreting the language of the statement for timing cues.
The euro failed to maintain the rebound from the monthly low and slipped back below the 50-day moving average as investors held a cautious outlook for the region.
The U.S. dollar lost ground against most of its major counterparts as investors raised their appetite for risk, and the reserve currency is likely to face increased volatility over the following week as the economic docket is expected to reinforce an improved outlook for future growth.
A sharp rebound staged by the euro through the end of this past week may seem confirmation that the market has been comforted by the European Union’s pact to rescue Greece under dire circumstances.
Should there be a second round of panic focused on this struggling EU member, it is not likely that the issue would pass so easily on mere assurances of action and reiterations of confidence from various policy officials.
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