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Powell has Shaken Things Up

Forex Signals Brief for Nov 29: The FOMC Just Got Interesting

Posted Thursday, November 29, 2018 by
Rowan Crosby • 2 min read

It was a huge day yesterday on world markets and the FOMC Minutes just took on a whole new level of importance.

The big news on world markets yesterday, was that US Federal Reserve Chairman Jerome Powell came out and said that interest rates in the US had reached a neutral level.

The backdrop here is that markets have been pricing in a rate hike in December plus two more in 2019. That really changes the landscape and there was certainly a risk-on feel late in trade.

Equity markets rallied while the USD fell away sharply on the prospect of a change from the hawkish tone.

That hawkish tone will be exactly what traders will be looking for today when the FOMC minutes are released. If there are a few more hints that the nature of the FED’s monetary policy is changing, then we could well see some strong follow through in the coming days.


Forex Signal Update

The FX Leaders Team went one and two as the USD rally put the majors well and truly in play today.


USD/JPY – Active Signal

The USD/JPY has run right up and found a bit of resistance around 1.1400. We are long on the small pullback here and are looking for another test of resistance.

USD/JPY – 240min.


EUR/JPY Pending Signal

The EUR/JPY has pushed higher and right into our resistance area at 129.00. However, we are now currently in over/under mode. We are still biased to the short side and if we pull back under, look for the failed break.

EUR/JPY – 240min.


Cryptocurrency Update

Bitcoin and the other major cryptocurrencies have had a huge 24 hours as price has spiked higher. The move initially looked like it was possible after we saw the buyers stepping up at $3,500 and the long wicks. That really sparked up as price broke out above the important $4,000 level.

However, the move wasn’t on technicals alone. There are reports that the NASDAQ is looking to launch a Bitcoin futures contract. That helped add some buyers. Ironically the U.S. SEC chairman Jay Clayton suggested that a Bitcoin ETF would be unlikely to happen anytime soon which is clearly negative.

Price has fallen back in Asian trading and we will need to watch the price action at $4,000 as that level will tell the story.

BTC – 240min.
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