The US Federal Reserve could end its USD 15 billion bond-buying programme on Wednesday according to the majority of investors. Although the stimulus programme may be coming to an end, interest rates are predicted to remain low for an extend amount of time. Given the problems in the European economy, rates may not rise until December of 2015. This pushes back the rate hike almost six months from the previous timeline, which expected a rate rise around June 2015. A delay in the rate hike would preserve the Fed’s efforts to rebound the US economy.

The FOMC announcement does introduce some risk in EURUSD as Alan notes, but any shift in the market’s prediction is viewed as highly unlikely. Alan expects the bullish run in EURUSD to continue, until a close above USD 1.2841 signals a move to a medium-term low. He cautions that only a move below USD 1.2665 would negate this trade.

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