Markets on Monday: More Rate Hikes Ahead

Wall Street closed the week a little on the flat side but there will be plenty of attention this week as we get the next instalment of the FOMC.

The next rate hike is all but priced in and we are also looking at a further one in December.

So in reality we might not expect too much of a response from the USD. However, there are plenty of other economic events to look out for that might get things going.

The major one of interest will be GDP. Where we saw a nice revision higher up to 4.2% recently. We also have consumer confidence, pending home sales and core durable orders. In what will be a very busy week ahead for the USD.

The USD Outlook

The DXY has finally cracked the support level at 94.50 and we saw price push down below the 94.00 level. We are now trying to put in a base above 94.00, but we have a bit of work to do.

93.80 has been support in the past and that appears to be the level that we need to watch. I’m not looking to be long the dollar until we can hold that level and make a higher low.

Monday should give us a bit of an idea about where markets are headed. With the big data releases starting on Tuesday with consumer confidence.