News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Bearish
USD/JPY
Bullish
More View more
Real Time News
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/IgUIG55MbH
  • Supply constraints, rebounding global demand and rising inflation expectations may drive crude oil prices higher in the near term. Get your market update from @DanielGMoss here: https://t.co/ezPoAwcJt7 https://t.co/NMfk1cYSvE
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/OiRiBVeuzL
  • Crude Oil Prices Aiming Higher on OPEC Surprise, Inflation Expectations - https://www.dailyfx.com/forex/fundamental/forecast/weekly/title/2021/03/06/Crude-Oil-Prices-Aiming-Higher-on-OPEC-Surprise-Inflation-Expectations.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $CL #Crudeoil #OOTT #OPEC https://t.co/AKvXWX9DLQ
  • Given the size of the rally in the eleven months preceding the beginning of the current decline a broader sell-off looks warranted. Get your market update from @PaulRobinsonFX here: https://t.co/UxZiSulpwB https://t.co/raXvlzkGbV
  • Greed is a natural human emotion that affects individuals to varying degrees. Unfortunately, when viewed in the context of trading, greed has proven to be a hindrance more often than it has assisted traders. Learn how to control greed in trading here: https://t.co/kODPAfJE79 https://t.co/lp0tmKS9WR
  • Trading bias allows traders to make informative decisions when dealing in the market. This relates to both novice and experienced traders alike. Start learning how you may be able to make more informed decisions here: https://t.co/rz7fqhRoMG https://t.co/3bOSIBeID9
  • Rising yields and US Dollar creates a weak environment for gold, which trades at a 9-month low. Get your market update from @JMcQueenFX here: https://t.co/lh6Qb2qxin https://t.co/MRAYe57e1A
  • RT @FxWestwater: US Dollar Fundamental Forecast: US Dollar Eyes Inflation Data After NFP Boost Link: https://www.dailyfx.com/forex/fundamental/forecast/weekly/usd/2021/03/06/US-Dollar-Fundamental-Forecast-US-Dollar-Eyes-Inflation-Data-after-NFP-Boost.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr $DXY https://…
  • Forex liquidity makes it easy for traders to sell and buy currencies without delay, and also creates tight spreads for favorable quotes. Low costs and large scope to various markets make it the most frequently traded market in the world. Learn more here: https://t.co/arxYmtQeUn https://t.co/NvEAeWkBP1
US Dollar Outlook Hinges on Federal Reserve Interest Rate Decision

US Dollar Outlook Hinges on Federal Reserve Interest Rate Decision

David Song, Strategist

US Dollar Talking Points

The Federal Reserve’s last interest rate decision for 2020 may shake up the near-term outlook for the US Dollar as the central bank is slated to update the Summary of Economic Projections (SEP), and it remains to be seen if the Federal Open Market Committee (FOMC) will take additional steps to support the US economy as Chairman Jerome Powell and Co. “assess how our ongoing asset purchases can best support our maximum employment and price-stability objectives as well as market functioning and financial stability.”

Fundamental Forecast for US Dollar: Neutral

The Greenback has struggled to hold its ground in December, with the US Dollar Indexplummeting more than 4% off the September highs, and swings in risk appetite may continue to sway the reserve currency as the unprecedented efforts taken by monetary as well as fiscal authorities have helped to provided a backstop for investor confidence.

US Dollar Outlook Hinges on Federal Reserve Interest Rate Decision

In turn, key market trends may carry into 2021 as the Chairman Powell tells US lawmakers that the FOMC remains “committed to using our full range of tools to support the economy and to help assure that the recovery from this difficult period will be as robust as possible, and the European Central Bank’s (ECB) decision to expand the pandemic emergency purchase programme (PEPP) may put pressure on Fed officials to provide additional monetary stimulus on December 16 even as the balance sheet approaches the record high ($7.243 trillion) seen in November.

US Dollar Outlook Hinges on Federal Reserve Interest Rate Decision

The Fed’s balance sheet widened to $7.243 trillion in the week of December 9 from $7.222 trillion the week prior, and the FOMC may rely on its asset purchases to combat the economic repercussions from COVID-19 as “most participants favored moving to qualitative outcome-based guidance for asset purchases that links the horizon over which the Committee anticipates it would be conducting asset purchases to economic conditions.

With that said, the US Dollar may continue to reflect an inverse relationship with investor confidence amid the ongoing expansion in the Fed’s balance sheet, and key market trends may carry into the year ahead if the FOMC adjusts its policy to foster a stronger recovery.

USD Forecast
USD Forecast
Recommended by David Song
Download the DailyFX Forecast for USD
Get My Guide

--- Written by David Song, Currency Strategist

Follow me on Twitter at @DavidJSong

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES