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.
Markets ahead Fed’s meeting
- The Fed will hold its first meeting this year on Wednesday at 21:00 MT time. No major changes are expected as the Fed doesn’t want to repeat the taper tantrum of 2013, which refers to collective reactionary panic that triggered a spike in US Treasury yields. To get ready, we highly recommend you to read our short article: “What does the first Fed meeting of 2021 have for the USD?”
- Nasdaq climbed up due to the ongoing earnings season. Microsoft reported better-than-expected earnings and set a fresh record. Today Apple, Facebook, and Tesla will publish their earnings reports after the market closing. Check earnings calendar
- Australia’s consumer price index of 0.9% exceeded the market expectations of 0.7%. The AUD modestly reacted.
- Crude oil modestly advanced higher, while gold started the say on the back foot.
The most traded pair is trading sideways without any clear direction. The FOMC meeting this evening will set a fresh vector. If the pair manages to break above the 200-period moving average at 1.2190, the way up to the next resistance level at 1.2220 will be open. On the flip side, the move below yesterday’s low of 1.2130 will drive the pair down to the low of January 20 at 1.2100.
The pound has approached the upper line of the Bollinger Bands indicator at 1.3740. Therefore, we can expect the pullback to the downside as the pair shouldn’t break 1.3740 on the first try. Support levels are at the recent lows of 1.3650 and 1.3600.
USD/JPY is trading inside a descending channel. Since the upside is limited by the 50-period moving average and the upper trend line, we should expect further falling. The breakout below the low of January 21 at 103.35 will drive the pair lower to the key psychological mark of 103.00.
Finally, let’s talk about the aussie. AUD/USD is trading inside the symmetrical triangle. Since the market sentiment is risk-off, the pair is going to dip in the near term. The move below the 100-period moving average of 0.7730 will drive the pair to the next support of 0.7710.
The Bank of England will hold a meeting on Thursday at 14:00 MT time (GMT+3).
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.
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!