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. See our updated Privacy Policy here.

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
Mixed
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
Bullish
Wall Street
Mixed
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
Gold
Bullish
GBP/USD
Mixed
USD/JPY
Mixed
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
More View more
Real Time News
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/lqpXwWjVFt
  • Looking for a new way to trade reversals? One of the most used reversal candle patterns is known as the Harami. Like most candlestick formation patterns, the Harami tells a story about sentiment in the market. Get better with trading reversals here: https://t.co/rfwUWJfbz9 https://t.co/CrpXuYgfRO
  • MACD who? The Moving Average Convergence Divergence (MACD) is a technical indicator which simply measures the relationship of exponential moving averages (EMA). Find out how you can incorporate MACD into your trading strategy here: https://t.co/ZNs4Qi8ieG https://t.co/VzEbQn8blk
  • Brush up your knowledge on trade-wars with this tool from DailyFX research briefly outlining trade-war history dating back to the early 1900s here: https://t.co/bZEFtp8kFe https://t.co/ETF52Q2sLz
  • Did you know a Doji candlestick signals market indecision and the potential for a change in direction. What are the top five types of Doji candlesticks? Find out https://t.co/c51s3IBcEu https://t.co/AXZxK8Abrh
  • Global stock markets may see turbulent volatility if darkening clouds over Washington’s relations with Beijing turn into a geopolitical storm. Which assets will be the lifeboat? Find out here:https://t.co/RkFI6qAyik https://t.co/9Ppa4d48Ql
  • The Dow Jones and S&P 500 outlook appears bleak in the near term as retail traders increase their upside exposure. At the same time, these indices confirmed bearish technical warning signs. Get your market update from @ddubrovskyFX here:https://t.co/fKCHELbOxo https://t.co/e0liqVDzw6
  • The Japanese Yen may fall against its major peers, but there is room for a near-term climb that wouldn’t necessarily overturn a bearish technical bias. USD/JPY is eyeing support. Get your market update from @ddubrovskyFX here:https://t.co/AEnQCXnwAL https://t.co/tuq7DDF3jE
  • Protests in Colombia may continue to pressure the Peso, but surging commodity prices and a weaker Greenback could curb USD/COP gains. Get your market update here:https://t.co/vcVH75xuKI https://t.co/kEvbsagB4a
  • Money never sleeps.... https://t.co/mAkpWd2M3O
Fed Meeting Preview: US Dollar Hinges on Guidance from Powell

Fed Meeting Preview: US Dollar Hinges on Guidance from Powell

Rich Dvorak, Analyst

US DOLLAR OUTLOOK: FOMC RATE DECISION & QUARTERLY ECONOMIC PROJECTIONS TO SWAY USD PRICE ACTION

  • USD price outlook largely fixated on the Fed announcement due 16 September at 18:00 GMT
  • US Dollar might resume its bearish trend if FOMC officials like Chair Powell echo loose policy
  • DXY Index could rally if the S&P 500 VIX snaps sharply higher amid renewed risk aversion

The US Dollar will likely be front and center on FX trader radars over the next 24-hours. This is considering high-impact even risk facing USD price action due to the Federal Reserve announcement scheduled to cross market wires this Wednesday, 16 September at 18:00 GMT. Periodic Fed meetings tend to leave the US Dollar vulnerable owing to heightened potential for outsized moves. FOMC officials are expected to reveal updated economic projections (SEPs) tomorrow and Chair Jerome Powell will hold a press conference shortly after the press statement release.

SUMMARY OF ECONOMIC PROJECTIONS FROM THE JUNE 2020 FOMC MEETING

Fed Meeting Summary of Economic Projections Chart US Dollar Outlook

Chart Source: Federal Reserve

The FOMC is likely to reiterate the status quo of loose monetary policy and accommodative financial conditions, but US Dollar currency volatilitycould accelerate if guidance changes materially. In addition to the headline interest rate decision and SEPs, market participants might emphasize commentary on average inflation targeting (AIT) and yield curve control (YCC), which may weigh notably on the US Dollar as well.

US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (13 JUL TO 15 SEP 2020)

US Dollar Index Price Chart FOMC Decision September 2020

Chart created by @RichDvorakFX with TradingView

Headed into the upcoming Fed decision, the US Dollar Index (DXY) appears pinned between technical support and resistance roughly around the 92.75 and 93.35 price levels, respectively. A topside breakout could bring the 01 August intraday swing high into focus whereas a breakout to the downside could entice US Dollar bears to set their sights on fresh two-year lows.

USD PRICE OUTLOOK - US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)

USD Price Outlook US Dollar Implied Volatility Trading Ranges for September 2020 Fed meeting

The S&P 500 VIX Index, or fear-gauge, has potential to serve as a bellwether for US Dollar direction due to the generally strong positive relationship held between the two anti-risk assets. Options-implied trading ranges are calculated using 1-standard deviation (i.e. 68% statistical probability price action is contained within the implied trading range over the specified time frame). In other words, options-implied trading ranges of technical support and resistance outlined above are estimated to contain spot price action 68% of the time.

Keep Reading - Dow Jones Price Forecast: Big Support Holds Ahead of FOMC

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES