US Market Wrap
Markets managed to tick higher in the US while the USD also held up, ahead of what should be an interesting FOMC meeting later today.
There is always a bit of calm before the storm and that’s really what we’ve been seeing this week. Equities continue to climb higher, but for the most part the major forex pairs have been a little quiet this week.
The Greenback continue to be an interesting trade and did hold up overnight. On the US Dollar Index (DXY) the USD is sitting at 93.00, which is where it was back in July. So that does suggest that perhaps a fair bit of the downside is priced in?
The Data Agenda
The FOMC is the headline act today and that’s mainly thanks to the recent news that they will be adjusting their inflation target, which was outlined at Jackson Hole.
Effectively, the Fed will let inflation run hot before lifting rates, which has the impact of hurting the USD as demand should really be lower. That said, there doesn’t appear much chance of inflation of any kind in the short term, so that’s something else we have to consider. Otherwise, we will watch their outlook and any changes around bond-buying or even the dot plot. At this point, the expectation is that rates won’t go up for many years.
Elsewhere, we do get CPI out of the UK and also Canada later on. And despite all the action with the FOMC, retail sales data is also due for release in the US.
And not to be outdone, WTI will get the latest supply data with weekly inventory levels.
Forex Signal Update
The FX Leaders Team hit 4 winners from 6 trades in what was another busy session for the guys.
Make sure you follow our live signals as we could see some action after the FOMC.
EUR/USD – Pending Signal
The EUR/USD is currently under 1.1900 and it is not making much headway. Above that point could see a mini-jump.
EUR/JPY – Pending Signal
The EUR/JPY has fallen under the 125.00 and out of the uptrend for now. We are looking for a possible short signal.
BTC is slowly but surely creeping up towards the $11,000 level, and is looking bullish.
You have to assume there is a fair bit of resistance above that point, but nevertheless, as stocks push higher, the crypto’s are getting dragged along with them.