In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes reports...
Central Banks Pause Rates. Markets Await NFP
2023-11-03 • Updated
The Federal Reserve decided unanimously to maintain interest rates at 5.25-5.50%, a highly anticipated move that retains significant implications for monetary policy's future course. Despite this decision, the FOMC refrained from definitively ruling out potential future rate hikes, leaving room for policy adjustments. During his press conference, Chair Jerome Powell expressed deep concerns about ongoing inflation, implying that the current policy might not be restrictive enough. Rising bond yields also captured the Fed's attention, contributing to tightening financial conditions.
On the other side of the Atlantic, the Bank of England (BOE) took a similar stance by holding existing interest rates, following a series of consecutive rate hikes from December 2021 to August 2022. The UK grapples with high inflation, which surged to 6.7% in September, significantly exceeding the BOE's 2% target, similar to the US and Europe. Core inflation, excluding volatile food and energy prices, remains uncomfortably high at 6.1% for the UK. The country maintains a 15-year high interest rate of 5.25%, and it remains to be seen how this would impact the NFP release.
USDCAD - H4 Timeframe
USDCAD began a steady decline a short while ago, and the drop is currently approaching a demand zone. When price reaches the demand zone, I expect to see a bullish rally because the demand zone overlaps with other confluences like; the 200-period moving average, trendline support, and the bullish array of the moving averages indicating a bullish trend is at play.
EURUSD - H4 Timeframe
At this time, we can see the price action on the 4-Hour timeframe of the EURUSD chart returning to the previous high where we have a supply zone. My expectation is that the bullish move will be rejected from the supply zone, back to the 50-period moving average.
GBPUSD - H4 Timeframe
GBPUSD’s 4-Hour timeframe chart provides a much cleaner price action compared to the EURUSD chart of the same period. Here on GBPUSD we see the supply zone clearly at the 76% of the Fibonacci retracement as the price action slowly approaches it. The bearish moving average array is also quite clear.
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In the early hours of Tuesday, the US Dollar faces challenges in maintaining its strength against major currencies, with the US Dollar Index struggling to surpass the 104.00 mark. Investors are eagerly anticipating the release of key economic data, including January Durable Goods Orders and the Conference Board's Consumer Confidence Index for February. Additionally, the economic calendar includes...
Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.
After creating record highs, Wall Street's main indexes opened on Wednesday and began to edge lower, reflecting cautious sentiment among investors. They're eagerly awaiting crucial inflation data that could impact the U.S. Federal Reserve's interest rate decisions. The upcoming release of the personal consumption expenditures (PCE) price index is expected...
The month of February saw markets make several instinctive moves as well as create opportunities for proper leveraging of fundamental releases. Despite being a leap-year, there wasn’t any real impact on price delivery in the course of the month. As we await the opportunities that lie ahead in the month of March, here are a few thoughts to consider.
USD/CHF saw a rebound after declining for two days straight, climbing towards the important psychological level of 0.8800 during Wednesday's early Asian trading session. There's some pressure on the Swiss Franc (CHF) as traders await the Swiss ZEW Survey – Expectations report scheduled for later today. Moreover, investors are keeping...