The U.S. Federal Reserve held an unscheduled, closed meeting in Washington yesterday. This caused a frisson of excitement among some market participants, who are extremely sensitive to anything at all that comes out of the U.S. central bank, or the mouths of its board and other members.
In the event, the meeting seems to have been about U.S. bank deposit rates, which dictate interest payment on the monies that banks leave on deposit with the Fed on an overnight rate basis. Nothing came from the meeting that caused any movement in those currency pairs that have the Greenback as a component.
U.S. GDP today
A monthly report that can have the effect of creating volatility is that on U.S. Gross Domestic Product. This comes out today at 13:30 GMT. It is one of the main reports that the Fed has in mind when it states that the decisions to be made with regard to interest rates in the U.S. are “data dependent”.
The Forex market seems to be anxiously waiting for developments to unfold with regard to interest rates in the U.S. This is also a holiday week stateside, with Thanksgiving on this coming Thursday. For this reason we have a holiday shortened week and smaller volumes of trade, all of which can lead to unpredictable behaviour.