Weekly Forex Forecast: All eyes on the FED for the next market move [Video]

John Fortune Get Me Trading

Markets covered in the Weekly Forex Forecast: DXY, EurUsd, NzdUsd, UsdChf, UsdCad, GbpUsd, AudUsd, WTI, CadJpy, NzdCad, NzdChf, EurChf, ChfJpy, SPX, RUT, NDX, Nifty, DJIA, XauUsd, XagUsd & BTCUSD / Bitcoin

Weekly notes

Markets have been quiet over the last three weeks as traders & investors anticipate the outcome of this evenings FOMC meeting.

There has been a prevailing view recently that FED Chair Powell will announce the start of tapering in November, however, this has been thrown into doubt due to recent events including the situation around Chinese property developer Evergrande (which is still a default risk) which spooked the markets this week over contagion fears. Evergrande has come to an agreement with onshore bondholders however has still yet to agree terms with offshore bondholders who are due to be paid tomorrow (23rd September).

In the weeks Weekly Forex Forecast we have outlined multiple potential plays for both hawkish and dovish outcomes. It seems likely that whichever way the cards fall in this evenings FOMC, it is likely to kick start the next directional move in the Dollar Index & kick start markets across the board in the process.

Author

John Fortune

Get Me Trading

John Fortune is a professional trader and Head Analyst at Get Me Trading. John has over a decade worth of experience in the Financial Markets and produces a Weekly Forex Forecast covering over 30 markets each weekend.

EUR/USD keeps the rangebound trade near 1.1850

EUR/USD is still under pressure, drifting back towards the 1.1850 area as Monday’s session draws to a close. The modest decline in spot comes as the US Dollar picks up a bit of support, while thin liquidity and muted volatility, thanks to the US market holiday, are exaggerating price swings and keeping trading conditions choppy.

GBP/USD trades with negative bias, eyes 1.3600 ahead of UK jobs data

The GBP/USD pair trades with a negative bias for the second straight day, though it lacks bearish conviction and holds above the 1.3600 mark through the Asian session on Tuesday. Traders now look forward to the release of the UK monthly jobs report, which will influence the British Pound and provide some impetus to the currency pair.

Gold sticks to a negative bias below $5,000; lacks bearish conviction

Gold remains depressed for the second consecutive day and trades below the $5,000 psychological mark during the Asian session on Tuesday, as a positive risk tone is seen undermining safe-haven assets. Meanwhile, bets for more interest rate cuts by the Fed keep a lid on the recent US Dollar bounce and act as a tailwind for the non-yielding bullion, warranting caution for bearish traders ahead of FOMC minutes on Wednesday.

AI Crypto Update: Bittensor eyes breakout as AI tokens falter

The artificial intelligence (AI) cryptocurrency segment is witnessing heightened volatility, with top tokens such as Near Protocol (NEAR) struggling to gain traction amid the persistent decline in January and February.

US CPI is cooling but what about inflation?

The January CPI data give the impression that the Federal Reserve is finally winning the war against inflation. Not only was the data cooler than expected, but it’s also beginning to edge close to the mystical 2 percent target. CBS News called it “the best inflation news we've had in months.”

XRP steadies in narrow range as fund inflows, futures interest rise

Ripple is trading in a narrow range between $1.45 (immediate support) and $1.50 (resistance) at the time of writing on Monday. The remittance token extended its recovery last week, peaking at $1.67 on Sunday from the weekly open at $1.43.