US Wrap

US equity markets were mixed yesterday while the USD was quiet ahead of the FOMC.

As a result, we didn’t see very big ranges in the majors and haven’t all week for that matter.

The same is true of the other commodities that trade in USD, with the precious metals relatively flat and WTI still holding around that $65 level.

The lack of volatility has seen the VIX fall back under the 20 mark, which is actually the same level it was sitting at pre-China virus in March 2020.

The Data Agenda

The focus today is almost 100% on what will be said surrounding the FOMC and future changes to monetary policy.

We have been seeing rising bond yields, which suggest the broader market believe the best is yet to come. That’s not what the FOMC has been saying, however, and last time we heard from Jerome Powell, he said he was wanting to see employment improve before rates could rise.

Today, we are potentially looking at when he thinks that might happen. With volatility compressed as discussed early, this could very well be an explosive FOMC for yields, the USD and equities.

Forex Signal Update

The FX Leaders Team hit 1 winner from 3 trades, with the EUR featuring heavily in yesterday trading.

Keep watching the forex signals page as there could be plenty of action on the back of the FOMC.

AUD/USD – Active Signal

The AUD/USD has been soft recently and we are short looking for a quick drop.

USD – Watching

The USD is holding steady at the moment but look for a big move on any indication of changes ahead from Powell.

Cryptocurrency Update

BTC was looking very weak this time yesterday, but managed to bounce back and recover somewhat. Price tagged $54,000 before bouncing and we will now see if it can retest either the $58,000 or $60,000 level.

While the broader market was selling, XRP was charging and pushed into the 50 cent mark before falling away.