Action Insight Market Overview	Markets Snapshot
Dollar Firm ahead of FOMC, Sterling Down after BoE Minutes Dollar strengths mildly today as global stocks are mildly softer ahead of the highly anticipated FOMC announcement. It's widely expected policymakers will announce something called 'operation twist' -increasing the average maturity of securities holdings by swapping holdings of lower maturities Treasuries with longer ones, after the 2-day meeting. Compared with outright bond purchases (QE3), one advantage of operation twist is that the size of the Fed's balance sheet would remain unchanged and is less unlikely to invoke inflation. Full Report Here...
Featured Technical Report
GBP/USD Mid-Day Outlook Daily Pivots: (S1) 1.5678; (P) 1.5713; (R1) 1.5770; More. GBP/USD's fall resumes after brief consolidations and drops to as low as 1.5591 so far today. Intraday bias is back on the downside and further decline should be seen to next key medium term support at 1.5344. On the upside, above 1.5747 minor resistance will argue that a short term bottom is formed with bullish convergence condition in 4 hours MACD. In such case, lengthier consolidation would be seen before GBP/USD stages another decline. Read more... EURUSD Technical Outlook USDJPY Technical Outlook GBPUSD Technical Outlook USDCHF Technical Outlook USDCAD Technical Outlook AUDUSD Technical Outlook EURJPY Technical Outlook EURGBP Technical Outlook EURCHF Technical Outlook GBPJPY Technical Outlook

Featured Technical Report

Bernanke To Add Stimulus. No QE3 Yet The most critical event this week is definitely the 2-day FOMC meeting on September 20-21. At the Jackson Hole Symposium in August, Fed Chairman Ben Bernanke first signaled that the meeting has been scheduled to 2 days (originally 1day) so that 'a fuller discussion'; on 'a range of tools that could be used to provide additional monetary stimulus'; is warranted. Also indicated in the August FOMC statement, the September meeting should be extended as policymakers need more time to discussion about 'the possible costs and benefits of various potential tools';. It would be anticlimactic if nothing happens at the meeting. As unveiled in the August FOMC minutes, the range of tools discussed among members included reinforcing forward guidance about the likely path of monetary policy, additional asset purchases, increasing the average maturity of securities holdings, reducing the interest rate paid on excess reserve balances. Yet, no preference was indicated. Read more...

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GMT Ccy Events Actual Consensus Previous Revised 22:45 NZD Current Account Balance Q2 -0.92B -0.69B -0.10B -0.09B 23:50 JPY Trade Balance Aug -0.29T -0.01T -0.13T -0.16T 0:30 AUD Westpac Leading Index M/M Jul 0.50T 0.10% 2:00 CNY Leading Indicator Jul 0.60% 1.00% 0.90% 4:30 JPY All Industry Activity Index M/M Jul 0.40% 0.50% 2.30% 8:30 GBP BoE Minutes 0--0--9 0--0--9 0--0--9 8:30 GBP Public Sector Net Borrowing (GBP) Aug 13.2B 11.4B -2.0B -5.2B 11:00 CAD CPI M/M Aug 0.30% 0.10% 0.20% 11:00 CAD CPI Y/Y Aug 3.10% 2.90% 2.70% 11:00 CAD BoC CPI Core M/M Aug 0.40% 0.20% 0.20% 11:00 CAD BoC CPI Core Y/Y Aug 1.90% 1.60% 1.60% 14:00 USD Existing Home Sales Aug 4.75M 4.67M 14:30 USD Crude Oil Inventories -1.6M -6.7M 18:15 USD FOMC Rate Decision 0.25% 0.25%
Orders and Options Watch
US Session: Orders and Options Watch GBP: The British pound lost ground in London session speculation of a possible expansion of QEP in Q4 (one even talks about Oct) after the release of dovish BOE minutes, cable broke below 1.5600 to an intra-day low of 1.5590, stops below 1.5630 and 1.5600 were triggered, U.S. investment banks were seen selling sterling aggressively in London session. More stops are reported at 1.5580 and 1.5550 with some fair size bids seen above there. On the upside, offers are still noted from 1.5650 up to 1.5680 and mixture of offers and stops is tipped at 1.5700-10 but sizeable stops only emerging above 1.5750/55 and 1.5780. Read more...
Forex Trade Ideas
Trade Idea Update: EUR/USD – Hold short entered at 1.3700 As the single currency has retreated after faltering below yesterday’s high of 1.3745, retaining our bearishness and consolidation with downside bias remains for weakness towards this week’s low of 1.3586, however, break there is needed to extend the fall from 1.3937 to indicated previous support at 1.3556-58 but a drop below there is needed to confirm correction from 1.3495 has ended and bring resumption of early decline for a retest of 1.3495. Read more... Trade Idea: AUD/USD – Sell at 1.0450 As the Australian dollar has rebounded after falling to 1.0148 yesterday, suggesting consolidation above there would be seen with mild upside bias for retracement to 1.0340/50 and possibly towards 1.0399, however, price should falter well below previous support at 1.0482 and bring another decline later. A break of said support at 1.0148 would extend the fall from 1.0765 (b leg top) to minor support at 1.0110/15 Read more... Candlesticks Intraday Trade Ideas Update Schedule (GMT): 1st Update: 0630 - 0700; 2nd Update: 0930 - 1000; 3rd Update: 1230 - 1300; 4th Update: 1500 - 1530 Pairs Covered: EUR/USD, USD/JPY, GBP/USD, USD/CHF Elliott Wave Daily Trade Ideas Update Schedule (GMT): AUD/USD, EUR/JPY: 0800 - 0830; EUR/GBP, USD/CAD: 1430 - 1500
Suggested Readings
Fundamental Highlights Dear FOMC, Don't twist, Solve Clogged Home Financing Instead What to Expect from the FOMC Rate Decision Today All Eyes Fixed on the FOMC Bank Of England Minutes Suggest Certainty Of More QE By November Watch This Space... FOMC A Key Juncture For USD BoE Minutes Reveal Much More Dovish Bias, Norges Bank Decision Due Technical Highlights FX Thoughts for the Day GBP/USD Hammers at Week's Low Ahead of FOMC Statement EUR/USD Forecast: Bears Still in Charge Ahead of FOMC Statement EURUSD - Hesitates, Risk Remains To The Downside