
Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
The market calms down ahead of the Fed’s statement this evening. Most analysts expect the central bank will deliver the dovish statement, leaving rates at low levels for even longer. Those expectations are based on the previous Fed’s report, when it allowed inflation and unemployment rates to overheat. In this case, the US dollar will dip.
Anyway, the safe-haven greenback has been already on the back foot amid upbeat market sentiment due to optimistic vaccine hopes. Donald Trump announced that a vaccine has to be ready in the mere 4 weeks! Elsewhere, US industrial production for August came out worse than analysts expected: 0.4%, while the forecast was 1.2%. However, US Empire State Manufacturing Index beat estimates: 17.0 against the forecast of 6.2.
Let’s look at EUR/USD. The RSI shows that the euro is not overvalued yet. If the pair manages to cross 1.1900, it will open doors towards the next high of August 19 at 1.1950. Otherwise, the move below 50- and 200-period moving averages at 1.1835 will drive the price lower to the support of 1.1770.
Meanwhile, economic data was also mixed in the UK. The British CPI exceeded expectations: 0.2% vs. the forecast of 0.1%. Whereas, Producer and Consumer Price Indices came out worse than forecasted. The British pound is climbing up. If it manages to cross the high of September 10 at 1.3015, it will jump to the next round number at 1.3150. In the opposite scenario, if it falls below the recent low of 1.2780, it will drop to the strong support at the lower trend line at 1.2730, which it’s unlikely to break.
The Japanese yen gained on the better-than-expected trade balance and the weak USD. Many analysts expect the pair to fall to 105.15-105.20 zone, if the Fed delivers the dovish statement this evening. If it manages to cross it, the pair will plummet to the key psychological mark of 105.00. Resistance levels are 105.50 and 105.80.
Finally, let’s talk about gold. It has escaped the triangle, breaking through its upper line. The jump above the high of September 1 at $1 990 will drive the price to the next high at $2 015. Support levels are at $1 940 and $1 925.
That’s all for today! Follow US core retail sales at 15:30 MT time and then the Fed’s statement at 21:00 MT time!
Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
Your request is accepted.
A manager will call you shortly.
Next callback request for this phone number
will be available in 00:30:00
If you have an urgent issue please contact us via
Live chat
Internal error. Please try again later
Don’t waste your time – keep track of how NFP affects the US dollar and profit!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.