FOREX Outlook For This Week

We expect plenty of volatility this week as the US government will release some very important numbers. Wednesday brings the FOMC rate decision. Regardless of the decision, we expect to see a good tradeable event. While the Fed is expected to hold the line on current monetary policy, investors will be monitoring the statement that accompanies the release for a clue on what the Fed might be doing in the future. The focus will be on whether the Fed has changed its opinion regarding the slowing US economy and ever present inflation.

Thursday brings more US data. Durable goods and new homes sales are expected to move the USD. The market is looking for these data to confirm a further softening.

Friday ends the week with US GDP data and the University of Michigan consumer confidence. Again we are expecting to see signs of what some economists are still calling a "soft landing" of the US economy. Any upside surprises will add that much more volatility.