The FOMC could cut interest rates 25 basis points, it was the most important of several key economic data releases from Europe and the United States today. Following a press conference by Fed chairman Powell speech. If there will indicate whether further rate cuts will be made in the future, or the Fed may anticipate a cycle of rate cuts. Tonight, U.S. ADP payroll and the U.S. Q3 GDP fell to 1.7% or less, there is a good chance that the Fed cut interest rates again after cutting rates to 1.75%, investors are advised to stay focused and plan for the future. It was believe a large Q3 U.S. GDP gap could lead to market volatility, with short-term dollar and Dow futures down and gold, silver and yen rebounding. The Bank of Canada will release its interest rate decision and monetary policy report tonight, and watch the press conference. Interest rate decisions and monetary policy reports and press releases could be bearish for the Canadian dollar.
[Important financial data and events]
Note: * is the degree of importance
08:30 Australia Q3 CPI annualized rate **
The next day 02:30 FOMC Press conference
Today’s suggestion:
Euro/dollar
The dollar fell on expectations of weak U.S. economic data, believed to be one of the euro’s supports. All the while, the Brexit deal still hasn’t been approved by the British parliament, and repeated political wrangling could be bearish for both the pound and the euro. Technically, note that sterling will continue to lead the euro. Due to important data in Europe and the United States today, and pay attention to the FOMC released the interest rate decision and policy statement, Fed chairman Powell held a press conference speech.
British pound to US dollar
Brexit vote and approved the general election in December but the market expected bearish pound. Pound has recovered from its low against the dollar, but is expected to make only limited gains, heeding the 1.2895 resistance. The British House of Commons continues to debate and vote on the Brexit deal. If there is news, will affect the trend of pound.
Australian dollar to US dollar
Despite today’s release of Australia Q3 CPI annualized growth, the Australian dollar. But a trade deal between China and the United States could hit a snag ahead of schedule, potentially bearish the Australian and New Zealand dollars if problems intensify. It is only now that the Fed is expected to announce a cut in interest rates, before this period of bearish US dollar, will be expected to be bullish Australian and New Zealand dollar.
Dollar/Japanese yen
The market expected The Bank of Japan kept interest rates at negative levels, and may further ease monetary policy to weaken the Japanese yen. In addition, dow Jones industrial average futures held high, and the market forecast that the federal reserve will cut interest rates by 25 basis points, which is likely to make a cut, the dollar will test 109 against the yen. But limit the gains after testing 109 if the dollar follows the yen higher. Technically, USDJPY continues to follow the stock market. Target 109.05 and 109.15 resistance.
U.S. dollar to Canadian dollar
The Bank of Canada rates tonight, the market is expected to remain unchanged, bullish Canadian dollar. If U.S. Q3 GDP falls more than expected and expected the Fed cuts interest rates, it could still bullish the Canadian dollar in the short term. Technically, watch the USDCAD expect to test 1.3050 or 1.3035 support. Otherwise, resistance to 1.3125 or 1.3140.
United States crude oil futures
US API announced last week crude oil stocks declined, the news has been in the market for nearly two weeks, so adjust. The US Q3 GDP was expected to weak, the Brexit still unresolved, and the China and US trade deal has not been signed in advance. We believe that if the crude oil price rises to the $57 range or near $58, the crude oil price may be in the recent situation and make a deep adjustment. Target $53.
Gold
U.S. Dow Jones industrial average futures US30
The market watched the FOMC meeting, it could cut interest rates, supporting Dow futures to stay high. But U.S. economic data released today is expected to be weak, watch Dow futures adjust to test support at 26890 or 26755.
BTCUSD:
As US economy slowdown, FOMC would consider cut Fed fund rate. It is supposed bullish for crypto currencies, such as Bitcoin. Technically, if the bitcoin price failed to support at US7885, it would rebound to US9885 or US10250. Keep watching the gold price, catch up the trend in Bitcoin.
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Information provided by AT Global Market, Chief Analyst of Asia Pacific: Martin Lam