Home Forex Forex Market Analysis FED’s rate hikes and the US-Iran Nuclear Agreement

FED’s rate hikes and the US-Iran Nuclear Agreement

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Weeks ago economists anticipated a rate hike, but due to the latest softer data, it’s not expected that the Bank of England would raise its rate this Thursday Quarter inflation report.

The weak German factory orders added another stone to weaker Eurozone economic data, convincing traders that the European Central Bank monetary stimulus policy will not be erased earlier.

With lower than expected Non-farm payrolls with reaching 164K & low average hourly earnings of reading 0.1%, besides good 3.9% unemployment rate, all of these made complicated for the fed to raise rates until June.

Fed Chair Jerome Powell is having a speech today  titled “Monetary Policy Influences on Global Financial Conditions and International Capital Flows” in Zurich. Traders will focus whether he talks about inflation or any hint about the expected June hike.

Atlanta Fed President Raphael Bostic said on Monday he is relieved with “some overshoot” of inflation and expected two further rate hikes this year.

“I will be announcing my decision on the Iran Deal tomorrow from the White House at 2:00 pm,” Trump tweeted on Monday whether the U.S. should remain in the Iranian nuclear agreement

Eyes will also be on Australia retail sales which is expected to reach 0.2%, and inflation expectations of New Zealand that its previous reading was 2.1%

 

USD/CAD

On the daily chart, the pair had a tighter movement last week without favouring of any direction. The price reached the resistance area 1.2925-1.3 and couldn’t continue its bullish rally. This level is a high obstacle as it’s located at 61.8& Fibonacci too. The price is closely approaching the lower trend line from the high of 2015. So, if the price makes a reversal action, we can see a retest for its support zone 1.252-1.243


 

CAD/JPY

On the daily chart, the price ranges between the resistance zone 85.55-86.05 & the support 84.35. The price had shaped a double top at the previous zone but touched the support with a hammer, which indicates a return back to the sideways movement. So, any break of this zone would take the price higher to 88.15. And any close beneath the support level would show 81.4 level.

 


 

AUD/USD

On the daily chart, it was a long bearish rally moving in a downward channel. The price has bounced from the support zone 0.7535-0.75. A harmonic pattern (AB=CD) is set to provide the correction way too. Followed by oversold on RSI & price action formula, the price is supposed to retest 0.7635.

 


 

©Forex.Academy

 

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