US DOLLAR OUTLOOK: FOMC RATE DECISION & QUARTERLY ECONOMIC PROJECTIONS TO SWAY USD PRICE ACTIONUSD worth outlook largely fixa
US DOLLAR OUTLOOK: FOMC RATE DECISION & QUARTERLY ECONOMIC PROJECTIONS TO SWAY USD PRICE ACTION
- USD worth outlook largely fixated on the Fed announcement due 16 September at 18:00 GMT
- US Greenback would possibly resume its bearish pattern if FOMC officers like Chair Powell echo unfastened coverage
- DXY Index may rally if the S&P 500 VIX snaps sharply larger amid renewed danger aversion
The US Greenback will possible be entrance and middle on FX dealer radars over the following 24-hours. That is contemplating high-impact even danger going through USD worth motion because of the Federal Reserve announcement scheduled to cross market wires this Wednesday, 16 September at 18:00 GMT. Periodic Fed conferences have a tendency to depart the US Greenback weak owing to heightened potential for outsized strikes. FOMC officers are anticipated to disclose up to date financial projections (SEPs) tomorrow and Chair Jerome Powell will maintain a press convention shortly after the press assertion launch.
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SUMMARY OF ECONOMIC PROJECTIONS FROM THE JUNE 2020 FOMC MEETING
Chart Supply: Federal Reserve
The FOMC is prone to reiterate the established order of unfastened financial coverage and accommodative monetary situations, however US Greenback forex volatilitymay speed up if steerage modifications materially. Along with the headline rate of interest choice and SEPs, market members would possibly emphasize commentary on common inflation focusing on (AIT) and yield curve management (YCC), which can weigh notably on the US Greenback as effectively.
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Sep 17
( 16:09 GMT )
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US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (13 JUL TO 15 SEP 2020)
Chart created by @RichDvorakFX with TradingView
Headed into the upcoming Fed choice, the US Greenback Index (DXY) seems pinned between technical help and resistance roughly across the 92.75 and 93.35 worth ranges, respectively. A topside breakout may carry the 01 August intraday swing excessive into focus whereas a breakout to the draw back may entice US Greenback bears to set their sights on recent two-year lows.
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USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)
The S&P 500 VIX Index, or fear-gauge, has potential to function a bellwether for US Greenback course because of the usually robust optimistic relationship held between the 2 anti-risk property. Choices-implied buying and selling ranges are calculated utilizing 1-standard deviation (i.e. 68% statistical likelihood worth motion is contained throughout the implied buying and selling vary over the required timeframe). In different phrases, options-implied buying and selling ranges of technical help and resistance outlined above are estimated to comprise spot worth motion 68% of the time.
Maintain Studying – Dow Jones Worth Forecast: Huge Assist Holds Forward of FOMC
— Written by Wealthy Dvorak, Analyst for DailyFX.com
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