MORE ON ACFXblog.com
MARKET BRIEFING – LONDON OPEN 06.04.2016
Today at 19:00 pm London time the FOMC minutes for the last meeting will be published. The release could likely put a further downward pressure on the US currency.
The US Dollar continues to decline as the Federal Reserve’s earlier promises were not matched to the actions. The last FOMC meeting held in March also disappointed investors after it decided to take a significantly more dovish stance than the one it undertook in December.
At the last speech, the Fed chairwoman underlined the caution with changes to the monetary policy being considered. The patient approach pushed the dollar downwards, with its index is now trading below 95.00 level, being its five-month low.
The earlier promised four rate hikes in 2016 are now changed to a mere two, and even these are not guaranteed. As the CME Fed Watch Tool shows, the chances that the Fed will increase interest rates in September are around 40% at the moment.
Furthermore, investors give just 18% a chance to the hawkish actions of the Fed in June and 57% in December. Nevertheless, keeping in mind the last speech of Janet Yellen, the future policy will be much more accommodative to the state of the domestic economy, which is represented by the inflation rate and jobs market. The global circumstances will also continue to be observed.
At the moment, the cheap dollar could actually be of a benefit to the US economy as the local production will be supported. Also, that is the way to keep the cost of the domestic debt at affordable levels, which is imperative to the world’s largest economy.
EURUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.1450
Target 2: 1.1310
Projected range in ATR’s: 0.0070
Daily control level: 1.1400
GBPUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 1.4290
Target 2: 1.4030
Projected range in ATR’s: 0.0131
Daily control level: 1.4320
USDJPY
The intraday technical outlook
Trend 1 hour: Down
Target 1: 111.15
Target 2: 109.50
Projected range in ATR’s: 0.82
Daily control level: 111.75
USDCHF
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.9615
Target 2: 0.9500
Projected range in ATR’s: 0.0059
Daily control level: 0.9605
USDCAD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1.3255
Target 2: 1.3015
Projected range in ATR’s: 0.0122
Daily control level: 1.2995
AUDUSD
The intraday technical outlook
Trend 1 hour: Down
Target 1: 0.7625
Target 2: 0.7455
Projected range in ATR’s: 0.0085
Daily control level: 0.7725
GOLD
The intraday technical outlook
Trend 1 hour: Up
Target 1: 1250.00
Target 2: 1213.00
Projected range in ATR’s: 18.21
Daily control level: 1214.00
OIL
The intraday technical outlook
Trend 1 hour: Down
Target 1: 38.00
Target 2: 35.00
Projected range in ATR’s: 1.43
Daily control level: 37.25
MORE ON ACFXblog.com