Forecasts & Analysis | Fundamental, Page

Stocks surge ahead of Fed

Prices are poised to test the June lows

Traders now await the Fed decision

Over the past week, the benchmark cryptocurrency increased by more than 15%. At the moment, BTC is trading around $9250, confidently stepping over the threshold $9000.

The main range is $2.745 to $2.305. If the buying is strong enough to take out $2.413 with conviction then this could generate the upside momentum needed to challenge its retracement zone at $2.479 to $2.520.

Gold may be up for the session, but it’s actually trading at the mid-point of its wide, two-day range. Holding inside this range will be a sign of investor indecision ahead of the start of the Federal Reserve’s two-day meeting later today.

After falling for four consecutive sessions, GBP/USD is trading at levels not seen since early January. The pair has been mostly consolidating sideways in early European trading while the dollar is catching a bid.

ECB President Draghi’s speech today triggered a sharp fall in EUR/USD to a two week low. The pair has broken below some significant support although candles closes on the higher time frames are needed for confirmation.

In a story that is surprisingly generating very little support for prices, acting U.S. Defense Secretary Patrick Shanahan announced on Monday the deployment of about 1,000 more troops to the Middle East for what he said were defensive purposes, citing concerns about a threat from Iran.

There have been arguments that traders have now pre-positioned portfolios, and happy to drift into the menagerie of central bank speakers this week.

The escalating US-China and US-Iran tensions kept adding considerable downward pressure on the Oil prices. Street analysts hope a 1.6% drop in the April CAD Manufacturing Shipments data.

We’re not expecting too much movement ahead of the Fed’s interest rate and monetary policy decisions on Wednesday. Both the AUD/USD and NZD/USD are expected to remain under pressure because the Reserve Bank of Australia and the Reserve Bank of New Zealand are expected to cut interest rates in the

The Fed will begin its two-day policy meeting on Tuesday with its policy decision and public comments on Wednesday. The Bank of Japan (BOJ) is expected to leave interest rates at ultra-low levels, while maintaining its massive stimulus program on Thursday. Worries about Brexit are hitting the British Pound and

Demand remains subdued

Gold consolidates ahead of Fed

The new short-term range is $2.305 to $2.413. Its 50% level or pivot at $2.359 is controlling the direction of the market today. The price action suggests that a support base is forming. Prices aren’t likely to move much out of this range until traders get the next weather forecast.

On Monday, gold prices are recovering from their lows following the release of a weaker-than-expected Empire State Manufacturing Index report. It came in at -8.6, well below the 12.1 forecast and 17.8 previous read. We’re not expecting major moves in Treasury yields or the stock market ahead of the Fed

While the inside trade may indicate opinions are mixed about the catalysts behind the price action, the lower trade suggests expectations of lower demand are outweighing supply fears being generated by Iran’s potential involvement in the attacks on oil tankers in the Gulf of Oman last week.

The concern for traders is not likely whether the Fed cuts rates or not at the June meeting, but how dovish it comes across for cuts in July or September. The market has been driving Treasury yields lower due to uncertainty over trade and geopolitics, the economy has been steady

Last week’s economic reports were mixed but the reduction in the chances of a June rate cut indicates that investors don’t expect a rate cut from the Fed at this meeting because the economy is still relatively strong. Some investors feel the need for a rate cut has been driven