USD Trading Outlook (01-08-2012)

U.S. Dollar Trading (USD) the EUR/USD pivoted the 1.2300 level but most other pairs lost ground against the USD which benefited from profit taking. The major risk event tonight is the US Interest Rate meeting where some change to the Federal Reserve monetary policy statement is expected but no change in the actually interest rate or current programs. Any real changes to FED programs are expected in September after the August Jackson Hole summit in which global central bankers meet to discuss future policy. Looking ahead, July ADP Employment Report forecast at 120k vs. 176k previously. Also July ISM Manufacturing PMI is forecast at 50.2 vs. 49.7 previously. Finally, US FOMC FED Rates forecast to remain at 0.25%. Also closely watched is the FOMC Statement released at the same time.