Fed aftermath and Dollar momentum

Frank Walbaum FX Strategies.Asia

Important news for the day

Thu, 29th, 14:30 CET US Unemployment claims.

Fed aftermath

Jerome Powell did not cut rates during yesterday’s FOMC meeting.While rate remain unchanged the Dollar remains quite low with potential further losses ahead. After a slight retracement stock markets continued their way to the upside. The S&P 500 might just have retested the breakout zone and could push higher, similarly to the Nasdaq. Fed chair Jerome Powell did not offer any insights into future meetings and instead stated that the Fed remains data- dependant. According to him inflation would remain in control with the current rate while the labor market only slows slightly.

Market talk

While the Dollar remains slow, the AUD keeps pusing higher against the Greenback. After the currency pair cleared the technical resistance of 0.6900 more positive momentum might be on the cards. This could signal more upside momentum also against other currencies. Meanwhile the JPY is also also gearing up strength as well as the CAD, which also fell below a technical support zone.The crypto market, on the other hand, remains under pressure with no positive signs for now. Instead, BTC looks like it might also break the support level of USD 85,000

Tendencies in the markets

Equities positive, USD weaker, crypto weaker, oil strong, Silver sideways, Gold positive.

Author

Frank Walbaum

FX Strategies.Asia

Frank has been working in the TV business for several years. Acquiring his skills in Germany’s biggest broadcasting station, he then chose to work and live in Asia, which was in 2007.

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