The US's consumer price index was much higher than expected in the month of June at 0.9%, the largest monthly rise in inflation since 1981. Signs of a weakening dollar is still pumping demand into the USD and the stock market as far as this morning, and volatility is expected for the rest of the day for USD pairs. Compared to other major countries, the US has the highest inflation at 5%.
As inflation rises, investors look to the Fed to tell us what they expect to do with their current monetary policy. A higher CPI means that we could see a rise in interest rates- or in this case- more than two hikes by 2023. Odds are that the Fed will continue to downplay inflation and the dollar could come back down. However, it would be bullish for the dollar if Powell promises more hikes or sooner-than-expected hikes. We will have to wait for what the Fed decides to do in their testimony tomorrow. Overall, this news is probably not as bullish for the dollar as it is gold since a weaker dollar is all investors see right now. Speculation of more hikes is still speculation.
The dollar index already showing major rejection from the highs for the day and possibly forming its right shoulder in a head and shoulders pattern. Support is at around 92.32 if price can't hold itself up for the day.
UJ is coming way off highs for the day after a major spike in the USD pairs. Price is coming down to support after failing to close above resistance. Support lies under at its 200 SMA on the 4H chart and further support around 109.786.
UC is still in an uptrend from June, and price is up 0.47% on the day. The pair does look like it's pulling back from the highs, and major support is at 1.24867 if price continues to dip.
9/27/2021 Election results in Germany has German equities mostly flat on the day as investors are watching the Social Democratic Party take the lead in the polls. In Washington D.C., legislation is toiling to raise the US's debt limit, pass Biden's agenda and avoid a government shutdown from defaulting on federal aid with hundreds of […]
Hey everybody, this is a breakdown of some of the macro trends around Gold and some of the pressures it is facing from inflation and the Fed's potential rate hikes. Overview As of 09/26/2021, the Gold Continuous Contract is down -0.75% this week, and -3.79% for the month. Gold is currently caught in a limbo […]
Hey everyone! Welcome to this week's forex forecast for the week ending October 1st, 2021. I'm TraderBart with A1 Trading, and this week I'll be looking at USDJPY, GBPUSD, GBPNZD & XAUUSD. USD/JPY Price closed off for the week just above the resistance at 110.6 in this range bound market. Look out for how price […]