MARKET BRIEFING – LONDON OPEN 27.10.2015
Tomorrow’s Federal Reserve meeting will not be accompanied by a press conference. However, we will get from the FOMC a monetary statement.
The lack of a press conference should discount the possibility of the Federal Reserve Chairwoman, Mrs. Janet Yellen announcing a rise in interest rates.
Although a December rate move is not priced in by the markets, it would be expected that the Federal Reserve would like to keep its options open. The FOMC’s need for flexibility could, therefore, see the committee give the latest monetary policy statement a somewhat hawkish slant.
The outcome of Wednesday’s meeting could, therefore, see the Federal Reserve announce a US Dollar supportive statement.
Following the European Central Banks extremely dovish statement we have seen the Euro put a ceiling at its recent highs. Therefore, a statement by the FOMC that is seen by the markets as hawkish could potentially see the US Dollar experience a broad rally.
The Federal Reserve is not the only Central Bank that is due to meet during this week. The Bank of Japan will add to the debate when it meets on October 30. The Bank of Japan could decide to increase its QE programme, however, there is also a possibility that the Japanese Government decides to adjust its fiscal policy.
With so much news out during this coming week, combined with the expectation that the Fed will attempt to push the hawkish line in its monetary statement, there is potential for USDJPY to break above an area of resistance around the 121 level which ties in with a potential break above the 200 period daily moving average.
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1200
Target 2: 1.0950
Projected range in ATR’s: 0.0092
Daily control level: 1.1000
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.5450
Target 2: 1.5250
Projected range in ATR’s: 0.0100
Daily control level: 1.5380
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 121.70
Target 2: 120.30
Projected range in ATR’s: 0.70
Daily control level: 121.10
USDCHF
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.9900
Target 2: 0.9745
Projected range in ATR’s: 0.0082
Daily control level: 0.9750
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3270
Target 2: 1.3050
Projected range in ATR’s: 0.0108
Daily control level: 1.3120
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7325
Target 2: 0.7160
Projected range in ATR’s: 0.0082
Daily control level: 0.7200
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1177.00
Target 2: 1148.00
Projected range in ATR’s: 14.30
Daily control level: 1158.75
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 45.50
Target 2: 42.50
Projected range in ATR’s: 45.62
Daily control level: 45.20
MORE ON ACFXblog.com