What if the Fed expectations were too hawkish? 16/9/2014
The FX traders are in wait-and-see mood before the most important eco-political events back loaded on the second half of the week. The Fed decision (Wed) and the Scottish referendum (Thu) are the key events that should shape the FX prices in the coming days. Given the decent USD-long positioning in the markets, a balanced Fed tone may trigger a relief rally in the high yielding EM. Released in UK this morning, the August inflation report gathered little traction. GBP-traders stay away from spot trading as Scottish uncertainties persist. Finally, the bearish harami formation on the USD/CAD daily chart signals a short-term opportunity for traders playing it technical before the event/news stream begins.