My feeling is that the Fed will attempt to *not* be too dovish. The reason is that there is an equity bubble
clearly in progress right now, and a Fed that suddenly looks too dovish will actually scare the markets.
They may not want to look terribly hawkish, but they are going to want to leave the door open for a Dec hike, IMHO.
So I think support is higher for this pair, probably around 0.9250 to 0.9300 worst case.
IF the Fed scares the equity market by being too dovish, then we go risk off, and the funding currency loans will
get repaid, in which case your upper 80s is certainly possible, even worse.
ShyamalFx
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@SetagayaGirl, Yeah they dont want to upset the markets it seemes EU also making a range play..
clearly in progress right now, and a Fed that suddenly looks too dovish will actually scare the markets.
They may not want to look terribly hawkish, but they are going to want to leave the door open for a Dec hike, IMHO.
So I think support is higher for this pair, probably around 0.9250 to 0.9300 worst case.
IF the Fed scares the equity market by being too dovish, then we go risk off, and the funding currency loans will
get repaid, in which case your upper 80s is certainly possible, even worse.