That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
Friday Trades: EUR/USD, USD/JPY, and Gold
- The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
- Today, traders await PMI reports from the UK, US, and EU. Purchasing Managers’ Index (PMI) is an indicator that measures the economic health of the manufacturing and services sectors. The better-than-expected PMI report tends to push the currency of this country up.
- Earnings season goes on. Intel, Twitter, and AT&T released strong earnings results for the second quarter yesterday. Today, American Express will unveil its Q2 data before the stock market opens.
- The dovish ECB pressed down the EUR. Its President Christine Lagarde said the bank learned from the mistakes of past crises and won’t withdraw emergency support too early.
- US unemployment claims unexpectedly rose yesterday. As a result, the USD’s rally up stopped.
- Cryptocurrencies are recovering. Bitcoin has approached $33,000, while Ethereum is advancing to $2100.
EUR/USD is moving inside the descending channel. The breakout below the 1.1750 support level will press the pair down to the key psychological mark of 1.1700. However, if the euro manages to cross the recent high of 1.1780, it will jump to the 50-period moving average of 1.1800.
USD/JPY has reversed up from the lower trend line. If the pair crosses the high of July 14 at 110.70, it will jump to the psychological mark of 111.00. The downside is limited by the 50-day moving average of 110.00 and the lower trend line.
Gold is trading just below the 38.2% Fibonacci retracement level of $1815. If the yellow metal manages to break this level, it may jump to the 200-day moving average of $1825. On the flip side, the move below the support zone of the 100-day moving average of $1795 and the 23.6% Fibo levels of $1790 will open the doors to $1775.
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).
Germany, the leading economy in the Euro Zone, will reveal one of the key economic indicators – German Ifo Business Climate on September 24 at 11:00 MT time.
On Wednesday, September 22, Microsoft will be holding a product launch. The event starts at 18:00 GTM + 3.
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).