The markets have been anticipating the FOMC minutes that Ben Bernanke will be delivering tonight like vultures circling their prey. Tight ranges and low volumes have been apparent across the major pairs. Correlations in the markets have been going in and out of flux, leaving day traders lethargic and restrained. Traders have noted that sharp and sudden moves have been sighted as the institutional traders adjust their positions running into tonight’s meeting. Long term positions will be readjusted after Bernanke begins to deliver the eagerly anticipated news on the outlook of the Quantitative Easing program. Analysts expect that the QE3 program will be adjusted by the end of the summer, however questions have been raised as to whether it may be done sooner. Perhaps they meant the English summer. There is talk that the minutes that Bernanke presents will be less transparent than compared to previous announcements, as the FOMC regularly uses opacity as a tool to soften blows. If this method is employed then heavy volatility is expected from the onset and to carry on for the rest of the week.Tomorrow is set to offer large amounts of tier 2 data from the UK, US and the Eurozone. However traders will remain vigilant as the impact of the data may be magnified/softened in the wake of the FOMC minutes.Consolidation across the major pairs (TP)
