Fed hikes rates as expected, BoE in focus

15 December, 2016

The U.S. Federal Reserve hiked the fed funds target rate by 25 basis points bringing the short-term interest rates to 0.75%, as expected by the markets. The central bank also signaled three rate hikes next year. The widely publicized event saw the U.S. dollar extend gains on the rate hike forecast with USDJPY continuing to push to new highs, while the Dow Jones pulled back from its record highs on the news. Looking ahead, U.S. consumer inflation data will be the next main event to watch today. The Bank of England's monetary policy meeting is also due where the central bank is expected to keep monetary policy unchanged.

USDJPY Daily Analysis

USDJPY (117.44): The dollar continued to extend gains against the yen yesterday as prices rallied to a new 52-week high of 117.40. However, this strong rally which is now into a sixth consecutive week of gains could start to show signs of exhaustion as price trades in the crucial resistance level of 117.40 - 116.15. A reversal in this resistance zone could validate a correction that has been long overdue. Support at 106.90 - 105.41 remains yet to be tested in the near term. Alternately, a breakout above 117.40 - 116.14 resistance level could signal further continuation to the upside, provided support can be established at this freshly breached resistance level.

EURGBP Intra-day Analysis

EURGBP (0.8382): EURGBP remains consolidating near the 0.8373 support level as the evolving inverse head and shoulders pattern continues to be in play. As long as price does not close below 0.8330, the bias remains to the upside provided; EURGBP can manage to breakout above 0.8467 minor resistance to extend gains to the neckline resistance at 0.8572. Today's Bank of England's monetary policy meeting could prove to be the catalyst which could see some volatility in the EURGBP.

USDCAD Intra-day Analysis

USDCAD (115.22): USDCAD posted a strong bullish reversal off the support at 1.3100 yesterday with prices currently seen at the resistance zone of 1.3285 - 1.3255. A near-term pullback to 1.3165 is quite likely where an unfilled gap rests. This short term bearish view is also validated by the hidden bearish divergence seen on the 4-hour chart. A retest towards 1.3165 could potentially signal renewed bullish momentum which could see USDCAD extend its gains towards 1.3400 - 1.3379. Alternately, failure to post a retracement to yesterday's gains could see USDCAD continue to push higher as the resistance level of 1.3400 - 1.3379 is likely to keep a lid on any further gains.

Source link  
Japan's Q2 GDP rebounds by 3.0%

The latest revised GDP numbers from Japan showed that the economy advanced faster than previously expected. The data on the final reading...

Dollar continues to slide

The greenback continued to weaken against some of the major currencies yesterday amid a quiet trading day...

Dollar looks to a new week

The US dollar index will be looking to a fresh week with the possibility of a rebound following last week's sharp declines..

US dollar rebounds as investor nerves cool

The US dollar managed to stem the strong declines after developments from Washington...

EURUSD unstoppable at a 6-month high

The euro surged ahead to a fresh 6-month high earlier this morning as the price was seen tradingþ...

Will UK's wages catch up?

The US dollar extended declines strongly for another day as economic data...

US dollar stays subdued

The latest monthly manufacturing activity report released by the New York Fed yesterday...

US dollar slips on soft inflation figure

The US dollar fell sharply on Friday after data showed that consumer price index rose 0.2%...

US dollar looking weaker

Economic data from the US continued to remain robust with the initial jobless claims declining to 236,000 for the week...

In the past 24 hours Bitcoin has lost -0.44% and reached $6452.75522737. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has gained 0.6352% and is now at $1.1587. Start trading and making money on Forex today.

In the past 7 days Ethereum has gained 2.61% and is now at $203.173094861. Have the most popular cryptocurrencies compared online 24/7.

Top Brokers offering Forex Market Analysis

Forex Currencies Forecasts

Top 10 Forex Brokers 2018

# Broker Review
6FIBO GroupFIBO Group84%