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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
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
  • Heads Up:🇮🇩 Inflation Rate YoY (JUL) due at 04:00 GMT (15min) Expected: 1.45% Previous: 1.33%
  • (ASEAN Fundy) US Dollar Outlook: SGD, THB, IDR, PHP May Benefit on Slowing Covid Growth, Soft NFPs #USD #ASEAN $USDSGD $USDTHB $USDIDR $USDPHP
  • 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:
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Gold: -0.12% Silver: -0.30% Oil - US Crude: -1.23% View the performance of all markets via
  • RT @Yeap_IG: #IGMorningthoughts: - 89% of #SP500 companies outperformed earnings thus far, but only 0.2% gain in SP500 since start of earni…
  • Gold prices risk forming a "Double Top" pattern - #GOLD chart
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: 0.01% 🇪🇺EUR: -0.05% 🇨🇭CHF: -0.10% 🇨🇦CAD: -0.14% 🇦🇺AUD: -0.17% 🇳🇿NZD: -0.17% View the performance of all markets via
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Silver are long at 92.87%, while traders in Wall Street are at opposite extremes with 74.32%. See the summary chart below and full details and charts on DailyFX:
  • Keppel Corp is seeking to buy Singapore Press Holdings (SPH) for S$2.2 billion following the spin-off of its media assets, and plans to delist and privatize the company - BBG
  • S&P 500 Futures Lift Nikkei 225, Regulatory Risks Hit Chinese Stocks
US Dollar Setup: USD/CAD, USD/JPY, EUR/USD Ahead of FOMC

US Dollar Setup: USD/CAD, USD/JPY, EUR/USD Ahead of FOMC

Daniela Sabin Hathorn, Analyst

Key Talking Points:

The hugely anticipated Fed meeting is here. Jerome Powell is the one tasked with reassuring investors that the US economy is on the track to recovery and the Fed has things under control despite hot inflation readings. The expectation is that there will be no policy changes, but investors’ will be paying closer attention to the inflation narrative, especially now that markets seem to be convinced that higher prices will indeed be transitory.


I think the question the FOMC needs to answer at this meeting is: what exactly does transitory mean? Is it months, years? How long do investors need to tolerate higher prices before they lose patience with inflation that undermines their asset prices?

Not only is unchecked inflation detrimental for investors, but it could also undermine the Fed’s credibility and the longer monetary policy is left unchanged as inflation rises, the greater the risk of a sudden change in policy, which increases the risk of recession further down the line.

In regards to the announcement, I believe a that the base case of no changes to policy will see some positive risk appetite and renewed dollar weakness, particularly against high-yielding, commodity currencies. If, on the other hand, we get a more hawkish Fed, either in terms of bringing the rate hike date forward or announcing tapering, then the USD is likely to pick up bullish momentum alongside bond yields, to the detriment of equities.

USD/CAD: we’ve seen some dip-buying in USD/CAD over the last few sessions, with the strong descending trend being halted just above the 1.20 mark. If the USD picks up momentum after the meeting then I’d expect the pair to break above 1.22, which will strengthen momentum going higher towards 1.2280. That said, a rise in oil prices given a larger drawdown in inventories has given the commodity-linked loonie some good support, limiting further bullish momentum in the pair. If the Fed maintains its dovish stance, then we may see USD/CAD break below 1.20 in the short term.

USD/CAD Daily Chart

US Dollar Setup: USD/CAD, USD/JPY, EUR/USD Ahead of FOMC

USD/JPY: the pair is heading to a multi-week high (110.97) ahead of the FOMC meeting. For the last week, USD/JPY has been seeing higher lows which suggest further bullish momentum, but the pair has been rejected overnight at 110.17, which may act as a short-term resistance ahead of the Fed decision later this afternoon. For the picture to turn bearish, the pair would need to drop below it’s 20-day SMA at 109.64 and then seeks to continue falling towards its 50-day SMA which is in confluence with the 23.6% Fibonacci level at 109.15 – 108.99.

USD/JPY Daily Chart

US Dollar Setup: USD/CAD, USD/JPY, EUR/USD Ahead of FOMC

EUR/USD: the pair seems supported around the 1.21 area as it sets up a dynamic trendline connecting the higher lows over the last few sessions. Bullish momentum continues to be capped above 1.2150 but an improving RSI could suggest that bulls will start to regain control again. A weaker USD on the back of a dovish Fed is likely to support the pair further as it nears previous resistance at 1.2182. A more hawkish Fed could see the USD get on the defensive and EUR/USD would possibly break below support at 1.21, heading towards 1.2030, where the 100 and 200 day SMAs are converging,

EUR/USD Daily Chart

US Dollar Setup: USD/CAD, USD/JPY, EUR/USD Ahead of FOMC

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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