The Federal Reserve speeds up its quantitative tightening, and this is certainly bullish news for the USD. At the same time, this is a negative factor for the American stocks, which have entered their seasonally worst month.
Weekly Forex Outlook: September 17-21
In this video we’ll go through the key topics for Forex trading. You will learn what’s happening to the major currencies and get ready for trading during the new week.
Will EUR/USD continue rising?
There were several reasons why the euro surged versus the US dollar in the past week. The meeting of the European Central Bank didn’t bring any negative surprises for the EUR. The USD, on the contrary, suffered as the US inflation data turned out to be weaker than expected. In addition, there were signs that trade tensions between the United States and China somewhat reduced. EUR/USD went above the 100-MA at 1.1675 and this is a positive sign. However, there are other obstacles – resistance at 1.1710/25 ahead of 1.1760. Support is at 1.1630. To continue rising, the euro needs good data from the euro area, positive comments from the ECB and favorable risk sentiment.
Are there good news for the GBP?
The pound recovered versus the USD. British currency is helped by the news of progress in Brexit talks. In addition, the Bank of England upgraded growth forecasts for the UK economy. There will be more Brexit-related headlines in the upcoming days as British Prime Minister Theresa May will meet the European leaders at an informal summit in Salzburg. No real agreement has yet been made. GBP/USD is in the uptrend but large swings are possible. Resistance lies at 1.3170 – this is a 50% Fibonacci level – ahead of 1.3270. Support is at 1.3030/00 and 1.29.
What’s happening to the Turkish lira?
The Turkish currency remains very volatile. USD/TRY fell as the nation’s central bank raised its benchmark one-week repo rate in order to stabilize the lira. Turkish central bank is thus showing its independence from president Erdogan who didn’t want to increase interest rates. The next level to watch on the downside lies at 5.90. Turkey’s move diminished concerns over the outlook of emerging markets. This may help the EUR and also the risk-sensitive currencies like the AUD and the NZD. Notice that Erdogan can object actions of the central bank. Follow the news to benefit from lira’s price swings, they will definitely continue.
Let’s now have a look at the economic calendar. USD/JPY will trade lively on Wednesday because of the meeting and press conference of the Bank of Japan. Also on Wednesday, we’ll hear from the ECB president Mario Draghi. New Zealand will release GDP on Thursday, while Britain will publish retail sales. Friday will bring European PMI indexes, Canadian CPI and retail sales.
The gold has made a perfect retest, but will it hold against the rising dollar? Also, the Jackson Hole Symposium and Jerome Powell's speech may become critical for most assets, and finally, more economic releases and earnings reports await you.
After last week's CPI turned the markets upside down, we are looking at the performance of the US dollar…
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.