Good day forex traders and readers.

As we head towards the FOMC event, we note the increasing apprehension and risk aversion. As the report below suggests, investors are probably holding back defensively as they wait.

As far as the EUR/USD is concerned, we note a similar situation where there is no definite direction of trading. It remains in a narrow range with a immediate resistance of 1.3280. In view of this I am currently on the fence. Find below the Bloomberg report :

Asian stocks fell, with the regional benchmark index paring its first monthly advance since April, before U.S. economic growth data and the conclusion of a Federal Reserve policy meeting.

Toyota Motor Corp. fell 1 percent, pacing declines among Japanese exporters as the yen strengthened. HTC Corp., Taiwan ’s biggest smartphone maker, tumbled 6.7 percent after forecasting an eighth consecutive decline in quarterly sales amid intensifying competition. SoftBank Corp. climbed 4.3 percent in Tokyo after the carrier that bought Sprint Corp. posted profit that beat estimates.

The MSCI Asia Pacific Index dropped 0.2 percent to 133.56 as of 10:42 a.m. in Tokyo, with about four shares falling for every three that rose.

“The market will pore through every word” in the Fed’s statement,’’ Bob Van Munster, head of Australian equities at Tyndall Investment Management Ltd. in Sydney, which oversees about $21 billion, said by telephone. “The overall message is we are coming to an end of quantitative easing but we are going to manage it according to the data that comes out.”

The Fed will probably maintain key interest rates at 0.25 percent in its announcement today, which will be watched by investors for clues to the timing of reductions in monetary stimulus. The European Central Bank and Bank of England review policy tomorrow. The MSCI Asia Pacific Index is poised for its first gain in three months in July, with more than 100 members scheduled to report earnings today, including Panasonic Corp., Mitsubishi UFJ Financial Group Inc. and Honda Motor Co. Regional Gauges

Japan ’s Topix index slipped 0.5 percent, while the benchmark Nikkei 225 Stock Average dropped 0.8 percent. The Japanese yen gained as much as 0.2 percent against the dollar today before trading little changed at 98.01 as of 10:30 a.m. in Tokyo . A stronger […]

Click here to view original article at www.bloomberg.com

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EUR/USD Update – Asian Stocks Fall Ahead of Fed, Paring Monthly Gain

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