Forex market into Fed decision: Hawkish talk unlikely - Oanda [Video]
|With the Fed decision the key risk ahead for the markets, we discuss the possible action ahead by the US central bank, and the outlook ahead for GBP/USD, USD/CAD and the USD/JPY, with Craig Erlam, Senior Analyst at Oanda, and joined by Mike Ingram, Strategist at BGC Partners, and Zak Mir, Technical Analyst at Zak’s Traders Cafe.
Highlights:
“Fed does not want to rock the boat when there are lot of uncertainties.”
“All the Central bank’s are saying the same thing that they would want to see more data to check if Brexit is having any negative impact. Even the Fed is expected to maintain the same stance.”
“There is still a possibility of one rate hike.. no chance for two more rate hikes in the year as the Fed cannot ignore elections risk. Thus, it wont be difficult for them to put off rate hike for now, but they are likely to say another rate hike is possible this year.”
“If Fed gives any dovish hint then the dollar could see a sharp drop.”
“GBP/USD Daily Chart – So much downside pressure over the last week. Looks so bearish as upticks are being met with offers consistently. If I was short I would probably feel ok about it.”
“It would really dent credibility of BOE if the bank keeps rates unchanged in August.”
“USD/CAD Weekly Chart – Struggling commodities supporting the pair.”
“USD/JPY Daily Chart – We had the rebound of the 50% Fib yesterday and a break above the Ichimoku would be bullish.”
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