Markets oscillated, ahead of the key FOMC meeting, this Wednesday. The Fed and the Bank of England are anticipating important interest rate decisions this week, although only the Fed is expected to make cuts. The last inflation reading in the US last week was hot, but in line with expectations, so expect at least a 25 basis point cut. The Bank of England needs to cut and stimulate a recessionary economy, but renewed inflationary pressures, preclude any such action. The US Dollar eased, with the EUR trading above 1.1750, while the GBP looks to regain 1.3600.The softer reserve allowed commodity currencies to benefit, with the AUD breaking above 0.6650, while the NZD heads back towards 0.6000. All eyes are on the Fed and speculation of Wednesdays actions.
