Target
No rate hikes and this is the effect on the eur/usd pair: the price is heading towards the resistance area placed at 1.14.So what will happen in the fed? No rate hikes today. The American interest rate will be published, which will almost certainly remain unchanged. It is very likely that the euro will strengthen further against the dollar, moving between 1.14 and 1.144. From here, after Powell's speech, we think it is a good point to reposition ourselves short. The first target on the support set at around 1.12 ( the next one will be 1.10 )
Monetary policy issues
What do investors expect from today's fed conference? Investors expect to understand the intentions of the Fed's next moves and its monetary policy: the market, with the stable and positive US economy, expects Powell to resume the aggressive policy adopted throughout 2018. This again means huge investments and speculations in favor of the US dollar.
No rate hikes and this is the effect on the eur/usd pair: the price is heading towards the resistance area placed at 1.14.So what will happen in the fed? No rate hikes today. The American interest rate will be published, which will almost certainly remain unchanged. It is very likely that the euro will strengthen further against the dollar, moving between 1.14 and 1.144. From here, after Powell's speech, we think it is a good point to reposition ourselves short. The first target on the support set at around 1.12 ( the next one will be 1.10 )
Monetary policy issues
What do investors expect from today's fed conference? Investors expect to understand the intentions of the Fed's next moves and its monetary policy: the market, with the stable and positive US economy, expects Powell to resume the aggressive policy adopted throughout 2018. This again means huge investments and speculations in favor of the US dollar.