This morning, the US posted their weekly jobs data and missed expectations for the fourth time in five weeks. All the while, inflation is growing at a faster rate than it has in decades reaching 5.4%. None of this looks good for the economy, but this could be good news for the US dollar.
I find it increasingly likely that investors could see the Fed raising rates sooner than anticipated or even more than twice by 2023. The expectation of capping inflation and raising rates could be the catalyst that sparks USD's recovery and further momentum to the upside. Powell's testimony has told us that the Fed is still not as concerned with inflation, they're still holding on to their asset purchases, and tapering is still a "ways off".
The dollar index is still respecting its rising trend line on the 4H as recent candles show rejection from the lows. We could expect another dip to also bounce off this rising trendline, or we could see price test a double top around 92.808.
UJ pulling back a little bit today after growing economic concerns in the US mount. The pair recently bounced off the bottom of a channel trend line suggesting that this level is a reliable support line. Price could come up to test resistance around 110.400.
GBPUSD rises today after coming off support from the rising trend line on the 4H. Price could test resistance around 1.39098 which serves as a significant resistance level; a break would be considerably bullish for the pair. However, a retrace could send it back down to its trend line.
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 […]