Forex Signals Brief for Jan 27: FOMC Ahead
Today’s focus is clearly on the FOMC and what they have in store for the first meeting of 2021.
US Wrap
US markets have, by and large, held reasonably steady over the past week.
That’s the same type of thing we saw yesterday, with stocks mostly flat, with some falls coming from the smaller caps.
Meanwhile, the USD retraced some of its gains, which helped prop up the majors. But overall, it wasn’t a particularly eventful day.
The Data Agenda
Today’s focus is clearly on the FOMC and what they have in store for the first meeting of 2021.
As we know, the US economy is in a precarious position thanks to the China virus and the ongoing lockdowns. In terms of the FOMC, they are now really out of bullets and their only real strategy is to continue to print money and buy back Government bonds. Clearly, a strategy that has a used by date.
As such, I suspect there will be little said by Powell as they continue with their current trajectory.
Forex Signal Update
The FX Leaders Team finished with 1 win from 3 trades as markets were mixed across the board.
USD/CAD – Active Signal
The USD/CAD is holding up at 1.2700 despite the downtrend and we are long looking for a quick bounce.
USD/JPY – Active Signal
The USD/JPY has been seeing incredibly low volatility as price makes its way down this trendline. We remain long here.
Cryptocurrency Update
Little has changed with both BTC and ETH and I am still expecting to a break come in both.
Ethereum appears to be far stronger and that’s the one I am most bullish on at the moment.
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