The US dollar jumped after the Fed delivered a relatively hawkish interest rate decision. In a statement, members of the Federal Open Market Committee (FOMC) said that the bank will start raising interest rates in 2023, earlier than the expected 2024. The dot plot signaled a 0.6% increase by the end of 2023. They also discussed tapering or slowing of the $120 billion a month quantitative easing program. In response to the statement, the dollar index and bond yields rose while stocks retreated.

The New Zealand dollar gained against the Aussie after relatively strong GDP data. According to the NZ statistics agency, the economy bounced back by 1.6% on a quarter-on-quarter basis after falling by 1.0%. This increase was better than the median estimate of 0.5%. This recovery led to a 2.4% year-on-year increase, which was better than the expected increase of 0.9%. This increase happened as more businesses re-opened, and as foreign demand rose.

The Australian dollar was little changed after fairly strong employment numbers. Data published by the bureau of statistics revealed that the unemployment rate declined from 5.5% in April to 5.1% in May. In the same period, the participation rate rose from 66.0% to 66.2%, which was better than the median estimate of 66.1%. The economy added more than 115k jobs in May after it shed more than 30k in April. Elsewhere, the Swiss National Bank (SNB) and Central Bank of Turkey (CBRT) will release their decision while the Eurozone will publish the latest inflation data.

AUD/NZD

The AUDNZD pair declined sharply after strong data from Australia and New Zealand. It fell to 1.0760, which was the lowest level in more than a week. On the four-hour chart, the pair seems to have formed a double-top pattern and moved slightly below the 25-day moving average. Similarly, the signal and histogram of the MACD have made a bearish crossover. Therefore, the pair may keep falling as bears target the next key support at 1.0700.

Chart

EUR/USD

The EURUSD pair declined sharply after the Fed decision. It fell to 1.1980, which was the lowest level since May. On the four-hour chart, the pair managed to break below the lower line of the descending trendline. It also fell to the 50% Fibonacci retracement level while the Awesome oscillator declined sharply. Therefore, the pair will likely pull back today and then resume the downward trend.

EURUSD

USD/CHF

The USDCHF pair popped after the FOMC decision. On the four-hour chart. The pair rose above 0.9053, which was the highest level on June 4. The pair has also moved above the short and longer-term moving averages whole the RSI and MACD have kept rising. Therefore, the pair will likely show volatility ahead of the SNB decision.

USDCHF

General Risk Warning for FX & CFD Trading. FX & CFDs are leveraged products. Trading in FX & CFDs related to foreign exchange, commodities, financial indices and other underlying variables, carry a high level of risk and can result in the loss of all of your investment. As such, FX & CFDs may not be appropriate for all investors. You should not invest money that you cannot afford to lose. Before deciding to trade, you should become aware of all the risks associated with FX & CFD trading, and seek advice from an independent and suitably licensed financial advisor. Under no circumstances shall we have any liability to any person or entity for (a) any loss or damage in whole or part caused by, resulting from, or relating to any transactions related to FX or CFDs or (b) any direct, indirect, special, consequential or incidental damages whatsoever.

Feed news

How do emotions affect trade?
Follow up our daily analysts guidance

Subscribe Today!    

Latest Forex Analysis


Latest Forex Analysis

Editors’ Picks

EUR/USD slides under 1.16 as US Retail Sales smash estimates

EUR/USD is trading under 1.16 after US Retail Sales smashed estimates with 0.7% in September. Treasury yields are rising. The risk-on mood continues to underpin the pair, as the ECB policymaker Wunsch dismisses inflation concerns. 

EUR/USD News

GBP/USD retreats below 1.3750 after US data

GBP/USD has pared some of its gains after US Retail Sales beat estimates, with the core group hitting 0.8% last month. Earlier, investors shrugged off dovish comments from two BOE members. 

GBP/USD News

XAU/USD slumps to $1,770 area on upbeat US data, surging US bond yields

Gold started the last day of the week on the back foot and extended its slide to a fresh daily low of $1,770 in the early trading hours of the American session pressured by the dollar's resilience and surging US Treasury bond yields.

Gold News

Crypto bulls on winning streak pushing for more

Bitcoin price favors bulls reaching $60,000 by the end of this week and onwards to new all-time highs by the end of next week. Ethereum price broke a bearish top line and could hit new all-time highs by next week in tandem with Bitcoin. 

Read more

Why is Tesla going up?

Tesla's (TSLA) stock price has finally pushed higher in a series of steady and sure moves. We had nearly given up on our bullish call with Tesla stock as it kept struggling around the $800 level.

Read more

Majors

Cryptocurrencies

Signatures