The FOMC is in focus as we open up the week with the dollar crosses in play heading into the release. Although the central bank is widely expected to keep interest rates unchanged, market participants will be closely eyeing the updated quarterly projections as they pertain to employment, inflation, growth & interest rates. Fed fund futures have pushed out the first material expectation for higher rates until February 2017.
That said, the risk is for a more hawkish tone to bring back expectations with the U.S. Dollar Index turning lower today from basic trendline resistance extending off the late May high. Keep in mind we also have major economic data from the UK, Australia and Canada this week- we discussed key levels in the USD crosses as well as gold & crude ahead of the releases. Continue tracking these setups and more throughout the week- Subscribe to SB Trade Desk and take advantage of the DailyFX New Subscriber Discount.
Check out SSI to see how retail crowds are positioned as well as open interest heading into the open of June trade.
Relevant Data Releases
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Other Setups in Play:
- USD/CAD Contained by Clear Price Levels Ahead of Canadian Employment
- NZD/USD: RBNZ Breakout Approaching Initial Resistance Targets
- USD/CAD In Free-Fall; Critical Support 1.2540
- EUR/GBP Off Resistance- Broader Outlook Constructive Above 7645
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Looking for trade ideas? Review DailyFX’s 2016 2Q Projections !
---Written by Michael Boutros, Currency Strategist with DailyFX
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