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.

Free Trading Guides
EUR/USD
Bullish
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
GBP/USD
Mixed
USD/JPY
Mixed
Gold
Bullish
Oil - US Crude
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
Bitcoin
Mixed
More View more
Real Time News
  • The $AUD has risen in anticipation of a deal Washington and Beijing. But the Australia-China trade relationship has not suffered much and may even have been helped by China’s spat with the US. Get your market update from @DavidCottleFX here:https://t.co/An7h5X0Zcz https://t.co/Rn7mLbS1EF
  • How can traders avoid #FOMO in trading? Start by implementing a well-heeled plan taking only four hours per week. Get your insight from @JStanleyFX here: https://t.co/vwUShQPc27 #tradingstyle https://t.co/0Wn4xBL0AY
  • Do you know which type of stock is the right investment for you? Stock types help investors decide on specific #stocks to trade or assist with valuation methods either fundamentally or technically. Learn more about stock types here: https://t.co/yO3JalkqUU https://t.co/RoNdExHAdt
  • The status of the US #dollar as the safe-haven asset of choice remains untouched and any weakness in the greenback is likely to be short-lived. Get your $USD market update from @nickcawley1 here: https://t.co/LO2u38jpUT https://t.co/ctgCJSOeTH
  • #FTSE 100 testing key support as the index lacks a directional bias. #DAX reverses off channel top. Get your indices technical analysis from @JMcQueenFX here: https://t.co/IHF2dgMfg9 https://t.co/2fMTFlOeTR
  • With knowledge of price action, traders can perform a wide range of technical analysis functions without the necessity of any indicators, including management of risk. Build on you knowledge of price action here: https://t.co/9hQA0bsYtt https://t.co/5KQowxuiBf
  • The term ‘Ichimoku,’ literally means ‘one glance,’ in Japanese. Ichimoku, or the one glance indicator, is considered to be a self-contained system in the fact that no additional indicators are necessary. Learn more about the 'one glance' indicator here: https://t.co/T7o7W9C0Ro https://t.co/7bhBfWvEkR
  • Support and resistance are the cornerstone of technical analysis, making it the foundation that you build your knowledge on. Build a stronger foundation here: https://t.co/yXLaRpl90I https://t.co/85JHunf2Xf
  • Many traders ask how a trading method that is 77 years old is applicable today. Learn about the Gartley pattern and see how you can incorporate it into your trading style here: https://t.co/2yPmGH0XvT https://t.co/rtqUKZSdn1
  • Recessions can devastate the economy and disrupt the fortunes of individuals, businesses, and investors. But economic decline in the business cycle is inevitable, and your trading can be defined by how you respond to crisis. learn how to prepare here: https://t.co/e4CnobJCss https://t.co/ywv7RVP9qY
FOMC: US Dollar Edges Lower  as Fed Holds Rates, Extends Repos

FOMC: US Dollar Edges Lower as Fed Holds Rates, Extends Repos

2020-01-29 19:30:00
Rich Dvorak, Junior Analyst
Share:

FED DECISION: US DOLLAR CLINGS ONTO GAINS AFTER THE FOMC LEAVES RATES UNCHANGED AS EXPECTED BUT WILL EXTEND REPURCHASE AGREEMENT OPERATIONS (REPOS)

  • The US Dollar remains on its front foot after the January 2020 Fed meeting revealed that the FOMC left interest rates unchanged and stated it will continue repo operations through April
  • Changes to Fed language found in the latest FOMC press statement include a less-optimistic tone regarding household spending and comments on firming inflation
  • The Dow and spot Gold are extending intraday gains following the FOMC decision as traders await further details from Fed Chair Powell

As widely expected, the Federal Reserve left its benchmark interest rate unchanged at a target range of 1.50-1.75%.

Changes made to the January 2020 FOMC press statement from the central bank’s prior monetary policy update were sparse and thus warrant a muted reaction in the US Dollar so far.

Likewise, the response in the Dow Jones Industrial Average and spot Gold prices have been limited.

US DOLLAR INDEX PRICE CHART: 15-MINUTE TIME FRAME (JANUARY 28, 2020 TO JANUARY 29, 2020)

DXY Index Price Chart US Dollar January 2020 FOMC Decision

Chart created by @RichDvorakFX with TradingView

The US Dollar Index continues to trade above the 98.00 handle after eclipsing this technical barrier on the back of solid economic data yesterday.

USD price action could struggle to extend recent gains, however, seeing that the FOMC aims to extend its overnight repurchase agreement operations – or repos – at least through April.

Repo operations conducted by the Fed since September have overwhelmingly contributed to the massive $400 billion jump in total assets held by the Federal Reserve.

DOW PRICE CHART: 5-MINUTE TIME FRAME (JANUARY 27, 2020 TO JANUARY 29, 2020)

DJIA Price Chart Dow Jones January 2020 FOMC Decision

Chart created by @RichDvorakFX with TradingView

The Dow Jones Industrial Average is holding onto intraday gains thus far and could keep pushing higher with the prospect of additional liquidity injections from the Fed presenting a strong tailwind to equities.

Wall Street MIXED
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily -5% -2% -3%
Weekly 10% -14% -7%
Learn how to use Sentiment in your trading strategy
Get My Guide

GOLD PRICE CHART: 15-MINUTE TIME FRAME (JANUARY 28, 2020 TO JANUARY 29, 2020)

XAUUSD Price Chart Gold January 2020 FOMC Decision

Chart created by @RichDvorakFX with TradingView

Spot gold is pressing higher on confirmation that the Fed looks to continue expanding its balance sheet, but XAU/USD prices remain about 1% off recent highs.

USD Forecast
USD Forecast
Recommended by Rich Dvorak
Download our Comprehensive 1Q-2020 USD Forecast
Get My Guide

***THIS STORY IS STILL DEVELOPING – PLEASE BACK SHORTLY FOR THE FULL REPORT***

-- Written by Rich Dvorak, Junior 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

News & Analysis at your fingertips.