Talking Points:
- In this webinar, we used price action to look for setups after the massive run of USD-weakness that came into markets after yesterday’s FOMC announcement.
- The US Dollar has broken below multiple support levels after yesterday’s FOMC-dovishness, and this has catapulted other currencies such as the Japanese Yen and Euro higher.
- One of the more prominent takeaways from yesterday’s move has been Yen strength. With the Bank of Japan in a precarious position after the recent move to negative rates showing little impact to stem capital flows, this may be a theme that traders can continue to pick-on.
- Another area of interest on the back of a weak-USD is Gold. Gold has been on a considerable run thus far in 2016, and as Central Banks have taken a more cautious approach towards markets with even more loose monetary policy; with the European Central Bank putting in a massive increase to their QE program, Japan moving to negative rates, and the Fed backing off of rate hike expectations, this could provide continued strength in Gold prices. We discussed this in the article, Gold Prices Shine When Central Bankers Scurry into Action.
--- Written by James Stanley, Analyst for DailyFX.com
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