The Federal Reserve speeds up its quantitative tightening, and this is certainly bullish news for the USD. At the same time, this is a negative factor for the American stocks, which have entered their seasonally worst month.
US dollar: forecast for Nov. 27 - Dec. 1
The US dollar has been heavily sold for 3 weeks in a row. The fundamental picture for the USD remains weak. The Federal Reserve Chair Janet Yellen expressed concerns about the potential decline in inflation if rate hikes come too fast. Durable goods orders fell by 1.2% in October. The minutes of the Fed meeting showed that not all members of the central bank were in favor of a rate hike in the short-term. Finally, there are concerns about the US tax reform as the House of Representatives and the Senate have very different views about it.
In the coming days, America will release new home sales, CB consumer confidence, preliminary GDP, pending home sales, unemployment claims, core PCE price index, Chicago PMI and ISM manufacturing PMI.
Technically what we see on the weekly chart may be a “Three black crows” pattern. This pattern is regarded as a sign of bearish reversal. Some short-term attempt to recover may be expected at the start of the new week. At the same time, the 200-week MA will now act as resistance at 93.37 ahead of 93.50 (50-day MA). Downside targets lie in the 92.60 area (October lows), 92.00 and 91.50.
The gold has made a perfect retest, but will it hold against the rising dollar? Also, the Jackson Hole Symposium and Jerome Powell's speech may become critical for most assets, and finally, more economic releases and earnings reports await you.
After last week's CPI turned the markets upside down, we are looking at the performance of the US dollar…
Although the last week was intense, this one may be more dynamic and volatile. After the FOMC meeting and controversial decisions from the Bank of England, we saw a historical pound decrease, and the gold plunge. And there’s even more for you.
After the US CPI last week came out above the forecast, traders started expecting a 75-basis point rate hike…
In this video, we will talk about the potential change of a trend in the euro, another stock rally amid a global downtrend, gold prospects, and news that shakes the world right now. It’ll be a helpful video you don’t want to miss.