MARKET BRIEFING – LONDON OPEN 06.04.2016

MARKET BRIEFING – LONDON OPEN 06.04.2016

Postby Atlas CapitalFx » Wed Apr 06, 2016 4:56 am

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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

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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

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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

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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

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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

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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

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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

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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

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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








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Atlas CapitalFx
 
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