Will the FOMC strengthen the Dollar again?

Frank Walbaum FX Strategies.Asia

Important news for the day

Wed, 21st, 20:00 CET US FOMC Minutes.

Risk sentiment

Will the FOMC Minutes, which are being released today, surprise markets? The US- Dollar remains on the weak side as the Fed is expected to cut rates in September. However, technical indicators could offer further upside potential helping the Greenback to gear up steam again. On the fundamental front potential hawkish signs from the Minutes might cause the Dollar to regain some strength in the short term then. Open positions against the USD should hence be eyed cautiously before the news.

Market talk

Oil markets remain weak after stockpiles have increased. The slightly negative outlook on the economy also causes the demand to be weak. On the other hand equities rise and most indices are trading near their all- time highs. Bitcoin remains in a sideways pattern and in order to move higher the USD 60.000 level needs to be crossed. Precious metals are able to move higher as well. Further potential might be expected. Silver is showing some signs of a potential short- term retracement. In general the JPY currently remains on the weaker side. Should further comments in regards to future rate- cuts from the BoJ follow the Yen might resume its upside again.

Tendencies in the markets

Equities positive, USD weak (watch FOMC), cryptos positive, oil weak, metals positive, JPY weak.

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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