Financial authorities from around the world met up today in an all-day event where they will discuss monetary policy going forward. These closed-pressed meetings are eventually leaked to the public as officials are admitting to a higher-than-expected inflation on the USD. Esther George, Kansas City Fed president believes that it would be better to start tapering sooner than later. More talks of reducing the Fed's balance sheet is another thing being talked about.
We can expect volatility today in the forex market today and tomorrow as investors try to interpret these comments and stances toward monetary and fiscal policy in the US. 2022 seems like the year when the Fed will start taking action on tapering according to different analysts' expectations. Powell has been signaling to taper for quite some time now unlike the events of 2008 with Ben Bernanke who didn't give investors a warning, so this time, investors are able to adjust to the sentiment and expectations going into 2022. The dollar may start to see further strength going into next week too.
|USDCAD on the 1D chart is up today on a miss in GDP expectations. Price came back to a rising trend line before catching some support which seems like a strong level to keep price up. 1.24882 is additional support if price falls lower.|
USDJPY on the 1D chart came up to its 50 DMA after bouncing off a rising trend line paired with support at 109.600. More resistance hovers at 110.488 where there is a triple top. Should that level get broken, there is more resistance above at the highs of 111.600.
AU came all the way back up to resistance on the 1D chart around .72907 and is beginning to retrace. As the buck still seems weak compared to the USD, we might see a lower low after this to below the previous bottom, and price might touch support around .70236.
9/17/2021 Stocks are down -0.58% this morning after coming down to test a significant level of support once again. While stocks fall, the dollar rises in the anticipation of sooner-than-expected tapering by the Fed along with a hike in interest rates starting in 2022. Our outlook Other than September being one of the worst months […]
9/16/2021 The Euro-Dollar pair is down over 0.5% today after several days in the red. Today's speech by EU president Lagarde mentioned how the economic recovery had come quicker than expected six months ago. This was praised by the prompt vaccine distribution so citizens could get back to work. Across the pond, the US just […]
9/14/2021 This morning's report on CPI m/m and core CPI m/m came in at a lower percentage than expected which resulted in a falling dollar pre-New York session. The USD is now volatile under the uncertainty of potential tapering and rising rates while the equities market seems to be rising because of this. Our outlook […]
9/13/2021 Big money has been moving out of Australia's currency for nearly a month now which has been the biggest drop in long contracts in this amount of time year-to-date. Australia's dollar index (AXY) is up 0.06% at 73.61 on the day after rebounding from the lows around 71.19. Our outlook Australia's economy has surprised […]