Morning Update

Wow dollar has seriously strengthened against the Euro, Cable and Aussie!
I was out of the market yesterday, as it was a public holiday down here.

I think what's happening is that, traders are overbought against the dollar, that a sell-off occured from last friday, which is why we've been seeing a retracement occuring.

There was no big news out of europe and the UK last night, so we mainly saw stoplosses being triggered in the Euro below 1.3240 and 1.3220.

The Aussie on the other hand, had some pretty bad economic data out. the home loans report showed a decline to 3.9%, ANZ job advertisements report dropped to 1.3% in July and the confidence report declined to a reading of 2 in July.

We do have economic data coming out today:
Bank of Japan target rate - 4am GMT
Germany CPI - 6am GMT
UK trade balance - 8.30am GMT
US FOMC rate decision - 6.15pm GMT

For today, i think im going to lay quite low, as i'm not quite sure where the market will go tonite. I am going to limit the number of positions i'm holding over night today in case there are some insane movements after the FOMC decision.