• Obviously much will depend on the FOMC language but ‘risk-off’ sentiment remains dominant in the FX market so I’m still tending towards the view that we will see a test of technical levels starting at .9340.
  • The Yen crosses were not a big event yesterday.
  • I think its important to note what happened to the Yen last week when one of the big macro funds unwound positions across all financial markets; the Yen rose sharply. If the FOMC leads to more macro funds dumping positions then the Yen will likely rise sharply again.