In today's release, we’ll cover the following topics:
- US dollar weakness throughout the market.
- US inflation report.
- The decision on interest rates and control of the yield curve from the US Federal Reserve.
On the second trading day, we are observing a general weakening of the USD along with most currencies. As a result, the US dollar index once again reached new lows and before the opening of the American trading session, the general trend of trading remained downward, indicating a clear weakness of USD buyers.
I will draw your attention to the EUR / USD currency pair. During the European trading session, the quotes were held below the resistance area of 1.1370–1.1385. A potential breakthrough could trigger some robust growth, paving the way to 1.1485.
A similar situation with the AUD / USD currency pair. Quotes were held at the psychological resistance level of 0.7000, and a break will confirm added buying interest and a potential move to the next technical resistance level at 0.7180.
Now let's move on to the upcoming publication of the US inflation report. A sharp decline in the consumer price index, which analysts are not expecting, may put additional pressure on the USD. A more significant event for the markets will be the latest interest rate decision from the US Federal Reserve and the subsequent press conference.
Rates are expected to remain on hold so all attention will be focused on the decision of the Federal Reserve to control the yield curve. Despite the fact the probability of using this monetary instrument is low, the USD has noticeably weakened against most currencies.
It’s worth noting that the introduction of control over the yield curve for US government bonds will lead to an increase in demand for gold, as an alternative to US treasury bonds. Therefore, there is a risk of a further increase in the prices of gold and silver. In addition, it is important to understand that any decision by the US Federal Reserve can have a big impact on the USD.
That’s all for me. Closely monitor the news background and be prepared for all the surprises of the market.
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Trade with the Fibo Group!
- US dollar weakness throughout the market.
- US inflation report.
- The decision on interest rates and control of the yield curve from the US Federal Reserve.
On the second trading day, we are observing a general weakening of the USD along with most currencies. As a result, the US dollar index once again reached new lows and before the opening of the American trading session, the general trend of trading remained downward, indicating a clear weakness of USD buyers.
I will draw your attention to the EUR / USD currency pair. During the European trading session, the quotes were held below the resistance area of 1.1370–1.1385. A potential breakthrough could trigger some robust growth, paving the way to 1.1485.
A similar situation with the AUD / USD currency pair. Quotes were held at the psychological resistance level of 0.7000, and a break will confirm added buying interest and a potential move to the next technical resistance level at 0.7180.
Now let's move on to the upcoming publication of the US inflation report. A sharp decline in the consumer price index, which analysts are not expecting, may put additional pressure on the USD. A more significant event for the markets will be the latest interest rate decision from the US Federal Reserve and the subsequent press conference.
Rates are expected to remain on hold so all attention will be focused on the decision of the Federal Reserve to control the yield curve. Despite the fact the probability of using this monetary instrument is low, the USD has noticeably weakened against most currencies.
It’s worth noting that the introduction of control over the yield curve for US government bonds will lead to an increase in demand for gold, as an alternative to US treasury bonds. Therefore, there is a risk of a further increase in the prices of gold and silver. In addition, it is important to understand that any decision by the US Federal Reserve can have a big impact on the USD.
That’s all for me. Closely monitor the news background and be prepared for all the surprises of the market.
========
Trade with the Fibo Group!
