In today’s Forex Forecast, Steven Woodcock, Senior FX Analyst for Plutus FX, joined Nick Batsford and Zak Mir on the Tip TV Finance Show to discuss the USD/JPY, USD/CAD, GBP/USD and EUR/USD ahead of the FOMC meeting this week.
USD/JPY: All roads lead to Wednesday’s Fed decision
Woodcock noted that the pair is back to 121, but the market is largely confused ahead of the FOMC meeting with many currencies weak. Thus the Yen seems to be the only valid option following slightly better data being released from Japan recently. Woodcock concluded that we are going higher in the long-term, but for now expect a pullback towards 118.
USD/CAD: Looking for 1.55
On this pair, Woodcock began by noting that this is still an oil trade, with the next target being 1.3850. He believed that a target of 1.55 is possible in the long-term and he expected some kind off detachment for USD/CAD from oil. Woodcock added that $35 is around the equilibrium for oil.
GBP/USD: Fed decision to trigger price action
Woodcock outlined that he is currently selling the rallies around 1.5250 until we see whether the Federal Reserve hike interest rates in the US on Wednesday, or Yellen follows the path of inaction.
EUR/USD: Back to 1.17
When concerning EUR/USD, Woodcock commented that pair is trying to move back above 1.2220, before stopping everyone out and returning to the 1.17 area. But in the longer term, he still expected the pair to break parity and go lower to a target of near 0.8.
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