{"id":155666,"date":"2019-09-18T11:18:48","date_gmt":"2019-09-18T15:18:48","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=155666"},"modified":"2019-09-18T11:18:48","modified_gmt":"2019-09-18T15:18:48","slug":"fed-to-ease-further-at-fomc","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2019\/09\/fed-to-ease-further-at-fomc\/","title":{"rendered":"Fed To Ease Further At FOMC"},"content":{"rendered":"
September 18, 2019<\/div>
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By <\/strong>Orbex<\/strong><\/a><\/p>\n

Fed To Cut By .25%<\/strong><\/h2>\n

The US Dollar is trading with a bid tone ahead of the keenly-anticipated FOMC meeting later today.\u00a0In line with data weakness and softer global economic conditions, the market is widely expecting the Fed to\u00a0announce a fresh .25% rate cut.<\/a>\u00a0<\/strong>\u00a0Yesterday the Fed ran its first repo operation in a decade in a bid to help keep US rates in the Fed\u2019s targeted range between 2% and 2.25%. USD index trades 98.05 last, hovering below yesterday\u2019s highs.<\/p>\n

EUR Down On Dollar Strength<\/strong><\/h2>\n

EURUSD continues to trade in a highly congested manner ahead of the FOMC today.<\/strong>\u00a0Following the ECB\u2019s recent easing announcement, price had spiked higher. Since then, it has reversed to settle back in the middle of the post-ECB range as traders await a fresh catalyst from the Fed. This could see price quickly back above the 1.1112 level if the Fed delivers on action and guidance.<\/p>\n

UK Supreme Court Hearing Continues<\/strong><\/h2>\n

GBPUSD has traded a little softer so far today though price remains supported above the 1.2382 level.\u00a0The UK Supreme Court hearing regarding the legality of the PM suspending parliament continues today. There is still no sign as to which way the court will rule.<\/strong>\u00a0If Johnson is ruled to have acted illegally, this could cause a further spike higher in GBP targeting a test of the bear channel top next.<\/p>\n

Equities Traders Wait on The Fed<\/strong><\/h2>\n

Risk assets have had a quiet session so far also as traders await the FOMC.<\/strong>\u00a0Trump dialed back his initial \u201clocked and loaded\u201d rhetoric regarding the alleged Iranian drone strike on Saudi oil sites. He said that he does not want to go to war, which has helped curb risk aversion. SPX500 trades 3000.63 last with price hovering close to all-time highs at 3028.27.<\/p>\n

Safe Havens Mixed<\/strong><\/h2>\n

Safe havens have traded with a mixed tone over the European session so far on Wednesday with JPY lower against USD while gold has been a little higher.<\/strong>\u00a0A better risk backdrop has seen a weakening of safe-haven inflows for JPY while gold prices remain bid in the face of an expected US rate cut later today. XAUUSD trades 1502.31 last. USDJPY trades 108.20 last, sitting just above the day\u2019s lows.<\/p>

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Bearish API Sends Oil Lower<\/strong><\/h2>\n

Oil prices have been lower again<\/a>\u00a0following the API yesterday reporting a surprise crude oil inventory build of 592k barrels for last week, in contrast to expectations of a 2.889 million barrel draw.<\/strong>\u00a0Traders now wait for the headline EIA report later today. Saudi Arabia also announced that it had restored 50% of oil processing and will have the full capacity recovered by end of September, further weighing on oil. Crude trades 58.72 last, sitting back on the 58.57 support level for now.<\/p>\n

CAD Capped<\/strong><\/h2>\n

USDCAD has had a subdued day so far though remains a little higher on the session.<\/strong>\u00a0The pullback in oil prices yesterday has weakened CAD though upside moves in the pair have been tempered by expectations of a Fed rate cut later today. USDCAD trades 1.3265 last, mid-range between the 1.3207 and 1.33 levels.<\/p>\n

Aussie Under Pressure<\/strong><\/h2>\n

AUDUSD continues to weaken this morning despite the better risk backdrop and expectations of a Fed rate cut.\u00a0The RBA meeting minutes this week have heightened expectations of a forthcoming RBA rate cut which is keeping AUD upside capped for now.<\/strong>\u00a0AUDUSD trades .6834 last, testing the .6832 support level once again.<\/p>\n

By <\/strong>Orbex<\/strong><\/a><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By Orbex Fed To Cut By .25% The US Dollar is trading with a bid tone ahead of the keenly-anticipated FOMC meeting later today.\u00a0In line with data weakness and softer global economic conditions, the market is widely expecting the Fed to\u00a0announce a fresh .25% rate cut.\u00a0\u00a0Yesterday the Fed ran its first repo operation in a […]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-155666","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155666","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=155666"}],"version-history":[{"count":3,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155666\/revisions"}],"predecessor-version":[{"id":155675,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/155666\/revisions\/155675"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=155666"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=155666"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=155666"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}