MyFXspot.com Trade Ideas

  • EUR/USD: long at 1.1390, take profit at 1.1590, stop-loss 1.1290

  • USD/JPY: sell at 110.90, take profit at 109.00, stop-loss 111.85

  • XAU/USD: long at 1300.00, take profit at 1360.00, stop-loss 1270.00

Market Overview
The Federal Reserve signaled it would not hike interest rates this year amid a slowing economy and announced a plan to end its balance sheet reduction program by September.
The U.S. central bank reiterated its pledge to be "patient" on monetary policy, and said it would start slowing the reduction of its holdings of Treasury bonds in May, lowering its monthly cap to USD 15 bn from USD 30 bn.
"It may be some time before the outlook for jobs and inflation calls clearly for a change in policy ," Fed Chairman Jerome Powell said.
Updated economic forecasts released at the end of the meeting also showed policymakers had abandoned projections for any rate increases this year, and see just one rate hike next year.

Fed
After the announcement, fed funds futures contracts began pricing in a better-than-even chance of a rate cut by next year.  Powell pushed back on that view, saying the U.S. economy is in a "good place" and that the outlook is "positive."
The new economic projections released on Wednesday showed weakening on all fronts compared to the forecasts from December, with unemployment expected to be slightly higher this year, inflation edging down, and economic growth lower as well.
Fed policymakers project GDP growth to slow to 2.1% this year from the previous forecast of 2.3%, while the unemployment rate is forecast at 3.7%, slightly higher than the December projection.
Inflation for the year is now seen at 1.8%, compared to the Fed's forecast in December of 1.9%.
The new projections amounted to a wholesale downgrade of the Fed's outlook, with at least 9 of its 17 policymakers lowering their expected rate path and collectively shaving a full half of a percentage point off the expected fed funds rate at the end of this year.
EUR/USD's biggest one-day rise since January 25, helped bulls break above the 1.1420 Fibonacci, a 61.8% retrace of 1.1570 to 1.1177 fall. The thickening daily cloud, which currently spans the 1.1382-1.1409 region, underpins. Bulls should seek to avoid a daily close below the cloud base. We are long at 1.1390 for gains to our 1.1590 target. 

Economic research and trade ideas by MyFXspot.com

Our research is based on information obtained from or are based upon public information sources. We consider them to be reliable but we assume no liability of their completeness and accuracy. All analyses and opinions found in our reports are the independent judgment of their authors at the time of writing. The opinions are for information purposes only and are neither an offer nor a recommendation to purchase or sell securities. By reading our research you fully agree we are not liable for any decisions you make regarding any information provided in our reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise you to do your own research before making any investment decision.

Feed news Join Telegram

Recommended Content


Recommended Content

Editors’ Picks

EUR/USD holds above 1.0700 after US inflation data

EUR/USD holds above 1.0700 after US inflation data

EUR/USD stays in the lower half of its daily range but continues to trade above 1.0700 in the early American session on Friday. The data from the US showed that the annual Core PCE Price Index declined to 4.9% in April as expected, making it difficult for the dollar to gather strength.

EUR/USD News

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD trades above 1.2600 as dollar struggles to find demand

GBP/USD clings to daily gains above 1.2600 and remains on track to end the week in positive territory. The greenback struggles to attract investors after the data from the US showed that PCE inflation softened in April. 

GBP/USD News

Gold pulls away from daily highs, holds above $1,850

Gold pulls away from daily highs, holds above $1,850

Gold has lost its traction in the second half of the day on Friday and declined toward the $1,850 area. The benchmark 10-year US Treasury bond yield staged a modest rebound on the US PCE inflation data, not allowing XAU/USD to preserve its bullish momentum.

Gold News

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA 2.0 support expands with Binance and Kraken welcoming the airdrop, here’s how you need to prepare

Terra’s LUNA fork proposal has passed with 65.5% votes, Revival Plan 2 in action without algorithmic stablecoin UST. LUNA price could wipe out losses incurred by holders in the colossal crash of LUNC and UST. 

Read more

FXStreet Premium users exceed expectations

FXStreet Premium users exceed expectations

Tap into our 20 years Forex trading experience and get ahead of the markets. Maximize our actionable content, be part of our community, and chat with our experts. Join FXStreet Premium today!

BECOME PREMIUM

Majors

Cryptocurrencies

Signatures