Jan 28th, 2016: Fed Leaves Door Open

• Stock markets tumbled yesterday after the FOMC failed to rule out another rate hike in the near future. There had been some hope that recent market turmoil would have delayed another hike, but so far the Fed looks to be sticking to its original plan of steady if gradual rate hikes. The dollar recovered from early losses, but remains unchanged this morning.

• The yen has lost some of its urgency, as money flows away and back into the dollar, helping the USD/ JPY to rise.

• Australasian pairs are having a better morning of it though, helped by another spike in oil prices yesterday. The AUD/ JPY in particular has been building some good momentum.

• The euro remains locked in a range bound pattern as the euro and US dollar converge at a rapid pace.

Coming up today: 

• We start the day with Spanish unemployment rate data at 08.00.
• This is followed by UK preliminary GDP at 09.30.
• From 13.30 we switch to North America for Durable Goods and Unemployment claims date.
• Pending home sales follow at 15.00.

Trade Idea: 

• The AUD/ JPY is stringing some good days together and this could be worth noting as when the AUD/ JPY catches a trend it can fly.

• A good way to play this is a HIGHER trade predicting that the AUD/ JPY will close above 84.00 in 12 days time for a potential return of 110%.

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