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
Wall Street
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
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/FVisZuTP6M
  • Stocks appear to be in a corrective phase but could get put to the test; levels and lines to watch in the days ahead. Get your weekly equities forecast from @PaulRobinsonFX here: https://t.co/H1BaTlIHjY https://t.co/zP3mjfslSD
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • 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/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
USD Boosted by Fed's Powell Ahead of the FOMC Meeting

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

Nick Cawley, Strategist

USD News and Talking Points

- US Dollar boosted by extra Fed communication chatter.

- Short-Dated US Treasury yields near recent highs.

The DailyFX Q2 Trading Forecasts for all major currencies, commodities and indices, are now availableto download to help you make more informed trading decisions.

US Dollar to be Underpinned by Rate Hike, Hawkish Chatter

The Fed is fully expected to hike interest rates by 0.25% at today’s FOMC meeting, the second hike in a year. After the rate decision Fed Chair Jerome Powell will communicate his thoughts on the US economy and likely give clues to further rate hikes ahead, with analysts divided if there will be a total of three or four 0.25% hikes in 2018. At present there are only four FOMC meetings a year that also have updated economic projections – March, June, September and December – and these meetings are the ones traditionally seen as ‘live’ where policy changes occur. The market view is that if Powell now communicates after every meeting, all eight FOMC meetings per year should be seen as ‘live’.

Today’s meeting comes on the back of some robust US economic data with yesterday’s US inflation reading the highest in six years, while US unemployment is at an 18-year low. If Powell does give himself flexibility on communication and if today’s rate hike is accompanied by a hawkish Fed chatter, the US dollar could easily rally back to recent highs.

DailyFX Chief Currency Strategist John Kicklighter will be covering the FOMC Meeting Live from 6:45pm.

The latest IG Client Sentiment Indicator shows retail are positioned in a wide range of currency pairs, commodities and indices, and why sentiment changes matter.

US Dollar Index Price Chart Four Hour Timeframe (May 10 – June 13, 2018)

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

US Treasury Yields Pushing Higher

With US monetary policy tightening further, US Treasury yields continue to push higher, giving strength to the greenback. The interest-rate sensitive 2-year is near its recent decade-high of 2.59% while the 10-year will hit a new seven-year high when it trades back above 3.12%.

USD Boosted by Fed's Powell Ahead of the FOMC Meeting

If you are new to foreign exchange, or if you would like to update your knowledge base, download our New to FX Guide and our Traits of Successful Traders to help you on your journey.

What’s your opinion on the US Dollar? Share your thoughts with us using the comments section at the end of the article or you can contact the author via email at Nicholas.cawley@ig.com or via Twitter @nickcawley1

--- Written by Nick Cawley, Analyst

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

DISCLOSURES