Mixed Markets Today Ahead of FED Meeting Tomorrow
The forex market has been sort of uncertain in the last few days. The USD got a beating by the end of last week, but on Friday it made a decent reversal higher. It claimed back all the losses against the Euro, worth around 100 pips and risk pairs such as AUD/USD, NZD/USD and GBP/USD lost 70-80 pips, so the USD closed last week on the right footing.
Yesterday, the markets reversed again after Donald Trump tweeted about how great tariffs have been for the US economy. That gave the market the impression that the White House might push for more tariffs on Chinese products.
The USD bulls got soft on these comments and the Buck lost considerable ground again. GBP/USD climbed more than 100 pips again, helped also by some positive comments on Brexit. Commodity Dollars gained the upper foot again against the USD, but they declined during the night ahead of the Reserve Bank of Australia meeting minutes which were released early in the Asian session.
It seemed like the USD was going to find its feet again, but it wasn’t meant to be for USD buyers. Another wave of USD selling took place during the rest of the Asian session and all the major currencies made some decent gains against the USD. Now that the European session is well underway, the USD bulls seem to be charging back again.
EUR/USD has backed off of the highs around 1.1720 which seems to have formed a resistance area around it. USD/JPY has climbed 80 pips during the Asian session, but it reversed back down again and now it seems to be making another reverse.
So, the price has been all over the place. I suppose the market will continue to trade like this until tomorrow afternoon when the FED holds its meeting. Keep the trades tight guys and don’t stay too long on a position.
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