FOREX TRADERS

[ultimatepick]

While attention today will clearly turn to the FOMC statement from the Fed, the fact of the matter is that even under the most optimistic scenarios the Fed is likely to only maintain its hawkish bias rather than actually raise rates in the foreseeable future. To do so would risk tipping the badly damaged housing sector from a slowdown into a full blown recession. Despite the recent bounce in New Homes Sales, the underlying trends in housing remain weak with foreclosures continuing to rise and homeowner vacancies rates reaching record highs. We believe that these factors will prevent the Fed from actually hiking rates, unless US economy produces surprisingly strong growth results, materially above 3.00%. Only in this case, will the Fed consider resurrecting its tightening policy which it terminated in August of 2006. Thus, given the expectation that ECB will raise rates further while the Fed will not, the interest rate compression between the euro and the greenback should provide support to euro longs at the 1.2800-1.2900 zone.

http://www.dailyfx.com/story/dailyfx_reports/daily_brief/Euro_Slightly_Down__Swissie_Gets_1170244673...

So it looks like it all hinges on the GDP today. Lets not forget that the US wants a lower dollar and all that happened these past months.