Will GBP Plunge on Monetary Policy Summary?
The Bank of England will publish a monetary policy summary on Thursday, June 16, at 14:00 MT time (GMT+3).
Stock Market Recovers, Fed Meeting Is Eyed
Information is not investment advice
Latest news
- A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average.
- The day has started with the detailed record of the Reserve Bank of Australia’s last meeting. The bank warned about the slow rebound from lockdowns and claimed it wasn’t going to increase the cash rate before 2024. This is actually negative news for the Australian dollar. However, AUD/USD has surged at the start of the day driven by the overall risk-on sentiment.
- All eyes are on Wednesday’s Federal Reserve meeting. The US central bank is expected to start laying the groundwork for scaling back stimulus. If it hints at tapering, it will push the USD up.
- China’s assets are touching the dips driven by worries over Evergrande, the Chinese second-largest property developer by sales. The company’s stock dropped at the weekly opening by over 10%, as the company faces financial problems: its liabilities reached $305 billion.
- Gold has started recovering, ending yesterday with gains in the 1760 level. Crude oil prices are edging higher as well.
Technical outlook
EUR/USD has failed to cross the support level of 1.1710, which it struggled to break on March 30 and August 10. Watch the breakout of 1.1750. If it happens, EUR/USD is likely to surge to the 50-day moving average of 1.1800.
Gold has reversed up from the 100-week moving average of $1755. If it manages to break above the 23.6% Fibonacci retracement level of $1770, it will rocket to the psychological mark of $1800. On the flip side, if it reverses down from the resistance level of $1770, it will fall to the low of March 28 at $1730.
USD/JPY is moving inside the ascending channel. It is likely to bounce off the lower line at 109.30 and jump to the recent high of 110.00. Support levels are 109.30 and 109.00.
Similar
Will the Fed Surprise Investors?
The Federal Reserve will make a statement regarding the future monetary policy on Wednesday, June 15, at 21:00 MT time (GMT+3).
How Will USD React To The US PPI?
The US PPI will come out on Thursday, May 12, at 15:30 MT time.
Popular
How Will US PMIs Affect the USD?
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
Will Fed Chair Powell Move the USD?
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.
What Can Happen to the CAD after the Retail Data?
Canada will publish Retail Sales and Core Retail Sales on June 21 at 15:30 GMT+3.
Choose your payment system
