All eyes on FOMC decision

XTB Analysis Team XTB Poland

The FED’s decisions are often highly followed events as they have the potential to move markets and shift sentiment and today's event is no exception. The US central bank has been very cautious with handling its fiscal policy in an effort to balance what it refers to as “transitory inflation” and the ever increasing reliance of markets on cheap funds. Today’s decision could carry some extra weight as it will be accompanied by a series of macro economic projections in addition to a press conference by Jerome Powell shortly after. If today’s data shows significant signs of improvement, it could push the FED to issue a clearer statement on the potential timeline of tapering, which as we have seen in the past could have far reaching effects on stock markets, USD and commodities.

Oil prices recover after API report shows unexpected draw

Oil prices have been trading higher for quite some time and have benefited from more optimistic views thanks to the potential recovery of demand in addition to the continuing drop in inventories. Today’s EIA report will be worth following along with the FEDs economic projections, as a confirmation of the current trend could push prices even higher with WTI approaching recent highs around $72. On the other hand, a slowdown in economic growth along with an unexpected increase in inventories could increase pressure on Oil prices moving forward.

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XTB Analysis Team

XTB Poland

EUR/USD hovers around nine-day EMA above 1.1800

EUR/USD remains in the positive territory after registering modest gains in the previous session, trading around 1.1820 during the Asian hours on Monday. The 14-day Relative Strength Index momentum indicator at 54 is edging higher, signaling improving momentum. RSI near mid-50s keeps momentum balanced. A sustained push above 60 would firm bullish control.

GBP/USD holds medium-term bullish bias above 1.3600

The GBP/USD pair trades on a softer note around 1.3605 during the early European session on Monday. Growing expectation of the Bank of England’s interest-rate cut weighs on the Pound Sterling against the Greenback.

Gold sticks to gains above $5,000 as China's buying and Fed rate-cut bets drive demand

Gold surges past the $5,000 psychological mark during the Asian session on Monday in reaction to the weekend data, showing that the People's Bank of China extended its buying spree for a 15th month in January. Moreover, dovish US Federal Reserve expectations and concerns about the central bank's independence drag the US Dollar lower for the second straight day, providing an additional boost to the non-yielding yellow metal.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Weekly column: Saturn-Neptune and the end of the Dollar’s 15-year bull cycle

Tariffs are not only inflationary for a nation but also risk undermining the trust and credibility that go hand in hand with the responsibility of being the leading nation in the free world and controlling the world’s reserve currency.

Bitcoin, Ethereum and Ripple consolidate after massive sell-off

Bitcoin, Ethereum, and Ripple prices consolidated on Monday after correcting by nearly 9%, 8%, and 10% in the previous week, respectively. BTC is hovering around $70,000, while ETH and XRP are facing rejection at key levels. Traders should be cautious: despite recent stabilization, upside recovery for these top three cryptocurrencies is capped as the broader trend remains bearish.