What will happen in FOMC meeting? – North Korea’s heavy crisis

Investors keep focusing on the Federal Open Market Committee meeting on Wednesday. The central bank is widely expected to leave interest rates unchanged but investors are awaiting details on reduction of $3.7 trillion in Treasury and mortgage-backed securities bought during the financial crisis.
In my opinion, greenback may remain steady or increase higher against yen On the other hand, other currencies may become stronger than USD. Weak yen is definitely a benefit for Japan export and it may support Nikkei to stay in green zone. I suggest to see U.S. building permit at 08.30 today better than the forecast, and it may be positive for greenback.
Bank of England’s Governor Mark Carney commented that future hikes in interest rates could be “at a gradual pace and to a limited extent” so the pound rise up early morning today after it fell yesterday. Moreover, the Aussie dollar lead up after the Reserve Bank of Australia's showed that the central bank was positive about resilience in the country's jobs market, but expected wage growth to remain slow.
I am afraid that the tension on Korea peninsula may be heavier and may affect world market strongly. Hence, we need to attend the North Korea crisis carefully.

By Niramon Nitnitiphruet
Financial analyst, Olymp Trade

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