The FOMC members raised their expectations for the interest rate in the coming years. Have a look at this chart. It’s called ‘the Fed dots’ – each dot shows at which level one of the FOMC members expects to see the key interest rate in future. The Fed seems ready to raise rates next year. Apparently this was enough to make the USD feel good.
The Fed’s message was to watch the US economy. Next week pay attention to the American housing data like existing & new home sales, durable goods orders and final Q2 GDP. There will also be some speeches from the Fed’s officials – Dudley & Kocherlakota. These two are doves, and it would be quite interesting to hear their opinion.
The overall picture for dollar is positive. Note, though, that the risks of correction in USD have increased, especially versus euro and yen.
Recommended Content
Editors’ Picks
AUD/USD failed just ahead of the 200-day SMA
Finally, AUD/USD managed to break above the 0.6500 barrier on Wednesday, extending the weekly recovery, although its advance faltered just ahead of the 0.6530 region, where the key 200-day SMA sits.
EUR/USD met some decent resistance above 1.0700
EUR/USD remained unable to gather extra upside traction and surpass the 1.0700 hurdle in a convincing fashion on Wednesday, instead giving away part of the weekly gains against the backdrop of a decent bounce in the Dollar.
Gold keeps consolidating ahead of US first-tier figures
Gold finds it difficult to stage a rebound midweek following Monday's sharp decline but manages to hold above $2,300. The benchmark 10-year US Treasury bond yield stays in the green above 4.6% after US data, not allowing the pair to turn north.
Bitcoin price could be primed for correction as bearish activity grows near $66K area
Bitcoin (BTC) price managed to maintain a northbound trajectory after the April 20 halving, despite bold assertions by analysts that the event would be a “sell the news” situation. However, after four days of strength, the tables could be turning as a dark cloud now hovers above BTC price.
Bank of Japan's predicament: The BOJ is trapped
In this special edition of TradeGATEHub Live Trading, we're joined by guest speaker Tavi @TaviCosta, who shares his insights on the Bank of Japan's current predicament, stating, 'The BOJ is Trapped.'