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Forex Today: Markets await FOMC meeting

Forex Today: Markets await FOMC meeting

The US Federal Reserve will hold a policy meeting later today that will be closely monitored for its statement and economic projections.

➡️ The US Federal Reserve will hold a policy meeting later today where it is expected to keep the federal funds rate at 5.50%. However, close attention will be paid to the language of the Fed's statement and its economic projections which will likely reveal more about the possibilities for rate cuts in upcoming year-end meetings. This could give the US dollar, which has been consolidating over the long term, a renewed direction, which would do the same for the Forex market as a whole.

➡️ The Japanese yen continued to fall after the Bank of Japan raised the rate yesterday interest rate for the first time since 2007. The couple evaluatedtoria USD/JPY  is less than 40 pips from the multi-year high near 152 yen, having enjoyed a strong rally during the recent Asian session, while  the EUR/JPY currency cross  reached its highest level since 2008.

➡️ The stock markets they are mostly weakly bullish. The main Japanese stock market index,  the Nikkei 225,  it has risen above 40,000 and is not far from its all-time high reached just a couple of weeks ago. Yesterday  the S&P 500 index  it came very close to the new all-time high.

➡️ In the Forex market, the British Pound and the Euro have been the strongest major currencies since Tokyo opened today. The Japanese yen was the weakest. This brings the EUR/JPY currency cross into focus today  GBP/JPY .

➡️ Bitcoin  looks more bearish after reaching a new all-time high last Thursday just below $74,000. At this point trend traders will likely have abandoned any Long trades.

➡️ In the raw materials market yesterday cocoa futures fell again, but remain within a strong long-term uptrend . Trend traders will however be keen to get involved in this long-lasting trend on the Long side.

➡️ Canadian data on CPI (inflation) published yesterday were lower than expected, showing only an increase of 0.3% compared to last month, when an increase of 0.6% was widely expected.

➡️ Today there will be 3 important data releases:

  • UK CPI is expected to fall from 4.0% to 3.5%.
  • New Zealand GDP is expected to show a quarterly increase of only 0.1%.
  • Australian unemployment rate expected to fall from 4.1% to 4.0%.

 

Credit by DailyForex.com

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