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Wednesday, September 20, 2006

Market get Prepared for FOMC

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Market gets prepared for the 13:00 FOMC Minutes.
Everything is in so tight range.
Be Prepared everyone, After FOMC Rate Decision at 18:15 GMT, we shall expect nice movements, clearing the space.
EUR/USD holds nicely since morning above 1.2670
Gold is playing nice above 570
Silver stays at 10.72 - 10.83 range

Crude Oil did a Big fall at around 60.8 Levels, Due to Dollar weakness, we see nice holding in Commodities, however Jewellers in Asian countries, are buying at such low prices, and holding in Stocks, preparing for next month, which is season for Wedding, Eid festival, And numerous Festivals apparently coming ahead, which shall in return help the commodities

Main Call, we dont expect something big in the Statement. FED wont make any Significant changes, It appears Fed will also warn about inflation risks - Any reversal in Energy Prices or less than Expected slowdown in economic growth could quickly reignite inflationary Pressures.

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