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MARKET BRIEFING – LONDON OPEN 29.03.2016
The US Dollar is trading higher this morning as traders await a speech by Federal Reserve Chairwoman later this afternoon. As always, Janet Yellen’s presentation will be closely scrutinized by the market participants, who will look for clues regarding the Fed’s future monetary policy.
On the March 16, the FOMC delivered a statement, which gave a dovish message to the markets as it reduced the projected amount of interest rate increases for 2016. This action will likely lead to a lower dollar and expected to boost the US economy.
The shift towards a policy that seeks to devalue the US currency was highlighted by FOMC Chairwoman’s message to the worlds gathered press that US Dollar strength transitory. Although this term was used this was the first time it was applied in regards to the Dollar’s value.
The main goals of the policymakers are the price stability and a healthy US job market. Nevertheless, a weaker US Dollar policy is welcomed by the global markets as this could lead to price stability and less deflation there too. Furthermore, the policy of deliberately weakening the US Dollar could act as a spur for growth both within the USA and across the globe..
EURUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.1295
Target 2: 1.1095
Projected range in ATR’s: 0.0102
Daily control level: 1.1140
GBPUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.4400
Target 2: 1.4105
Projected range in ATR’s: 0.0150
Daily control level: 1.4105
USDJPY
The intraday technical outlook
Trend 1 hour: Up
Target 1: 114.45
Target 2: 112.40
Projected range in ATR’s: 1.06
Daily control level: 113.10
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9815
Target 2: 0.9650
Projected range in ATR’s: 0.0082
Daily control level: 0.9790
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3320
Target 2: 1.3050
Projected range in ATR’s: 0.0137
Daily control level: 1.3020
AUDUSD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 0.7630
Target 2: 0.7450
Projected range in ATR’s: 0.0090
Daily control level: 0.7490
GOLD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1243.00
Target 2: 1199.00
Projected range in ATR’s: 22.07
Daily control level: 1224.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 40.70
Target 2: 37.90
Projected range in ATR’s: 1.39
Daily control level: 40.15
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