Yesterday afternoon, the Federal Open Market Committee (FOMC; the Federal Reserve’s policy making body) met market expectations by implementing another 75 basis point interest rate hike. With this now being the fourth time in a row such a large hike has occurred, this was not the central story of the day; rather, it was Fed Chair Powell’s shocking press conference afterwards. While answering reporters’ questions, he repeatedly explained that, while the size of the rate hikes could grow slimmer soon, the Federal Funds Rate must now increase to a level previously thought unnecessary. He also mentioned preferring to err on the side of over-tightening monetary policy, since it would be easier for the Fed to lift the US economy out of contraction than to stamp out overheating. With the Federal Funds Rate now at 4% and the Fed doubling down on hawkishness, USD seems primed to continue its historic climb once again as US equities suffer.
Three Potential Pairs to Buy
According to the EdgeFinder, A1 Trading’s market scanner which offers traders an array of supplemental analysis, the following three pairs are viewed quite favorably for USD bulls. They are listed below with their respective ratings, signals biases, and corresponding charts. Tomorrow morning’s big US labor news, which will be discussed in a subsequent article today, will likely provide yet another fundamental catalyst that will influence price action for these pairs.
1) USD/CAD (Earns a 7, or ‘Strong Buy’ Rating)
2) USD/CHF (Earns a 6, or ‘Strong Buy’ Rating)
3) USD/JPY (Earns a 5, or ‘Buy’ Rating)
As of 9:10 am EST, the 10-Year bond rate is up ~3.50% while the dollar index remains flat. Some big news coming up in the next 24 hours for the USD, EUR and AUD. US consumer confidence is expected to fall from the last reading. We received a strange signal from the EdgeFinder that could […]
This week, we have seen a lot of market swings in sentiment along with uncertainty around economic stability. Because of this mixed mindset, investors have been shifting their interest towards gold. This article will cover why gold could continue to move higher. Medium to high impact news is coming up for all currencies such as […]
There are some major news ahead for the EUR, CAD, AUD and USD pairs this week. Wednesday will be another Fed rate decision forecasted to be another 25 bp. Here are some events set to come out tomorrow: EdgeFinder Analysis UC is still the EdgeFinder's favorite buy score along with USDZAR at +7. Retail is […]
