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
  • The Australian Dollar remains vulnerable to most of its major counterparts, with AUD/USD and AUD/JPY resuming losses. Did AUD/NZD bottom? AUD/CAD may consolidate. Get your weekly Australian Dollar forecast from @ddubrovskyFX here: https://t.co/sjh91mjtXs https://t.co/dGT067zKnH
  • Technical analysis of charts aims to identify patterns and market trends by utilizing differing forms of technical chart types and other chart functions. Learn about the top three technical analysis tools here: https://t.co/KDjIjLdTSk https://t.co/VLZQhrQTAf
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Learn about the importance of the ISM manufacturing index here: https://t.co/Xr3xtoFpZy https://t.co/j5xDAG6LLb
  • While the meetings of central bankers in the US, Japan and the UK will be front, left and center of traders’ minds this coming week, it would be wise not to ignore next Sunday’s German Federal Election. Get your euro forecast from @MartinSEssex here: https://t.co/m920Uvmngm https://t.co/yQYtfHf66s
  • Take a closer look visually at the most influential global importers and exporters here: https://t.co/G58J1dg6y3 https://t.co/Dqq9S9vGvo
  • 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/lccPTTlvj0
  • GBP/USD’s consolidation could end soon if price breaks out of a symmetrical triangle in play since July. At this time, a downside breakout is likely following the appearance of a death cross. Get your weekly $GBP forecast from @DColmanFX here: https://t.co/WIKdSesfkJ https://t.co/Fx0qr32xgI
  • 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/IRS9MaA7h8
  • The Federal Reserve rate decision is likely to sway the near-term outlook for the price of gold as the central bank appears to be on track to scale back monetary support. Get your weekly gold forecast from @DavidJSong here: https://www.dailyfx.com/forex/fundamental/forecast/weekly/CHF/2021/09/18/Gold-Price-Outlook-Hinges-on-Fed-Rate-Decision-Forward-Guidance.html https://t.co/dWWxtErjK0
  • 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/4qxwiJsV1K
FOMC: US Dollar Edges Lower  as Fed Holds Rates, Extends Repos

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

Rich Dvorak, Analyst

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.

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.

***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