Forex Market

Over the last two trading sessions, USD/CHF has shown a variation of just 0.4%, reflecting a clear neutral bias after the Swiss National Bank (SNB) rate decision.

Middle East developments remain the principal lodestar for FX traders, and unless there’s a material shift, dollar’s losses will likely be limited, and it may even find a floor around current levels. As such, the EUR/USD forecast is still subjective to increased volatility as investors await further developments in the Middle East.

Norges Bank cut earlier than expected, but the krone barely blinked. With USD/NOK still tracking oil and risk sentiment more than rates, geopolitical headlines remain the dominant driver.

CPI surprises to the upside again in Japan, reviving speculation that the BOJ may not be able to sit on its hands much longer. With geopolitical tensions and oil prices also driving price action, USD/JPY continues to grind higher.

The New Zealand dollar has broken down — and the Australian dollar may be next. With bearish divergences forming and risk sentiment fading, AUD/USD could soon follow NZD/USD lower.

USD/MXN has appreciated by more than 0.5% in recent trading hours, favoring the U.S. dollar, shortly after the Federal Reserve’s policy decision was released.

New Zealand’s economy outperformed in Q1, but you wouldn’t know it from the Kiwi’s reaction. NZD/USD broke sharply lower Thursday as geopolitical nerves saw risk appetite crater, triggering a bearish technical break that may have further to run.

Silver’s rally is starting to wobble, with wedge support under pressure and bullish momentum fading fast. Add in signs the U.S. dollar may have bottomed, and the risk of a bearish break is rising.

AUD/JPY remains firm above key support despite risk-off sentiment, with traders eyeing a bullish breakout if Australian employment data surprises to the upside.

The FOMC, and Fed Chairman Powell in particular, are seemingly less concerned with the deteriorating labor market and equally if not more focused on the inflation side of the central bank’s mandate.

Over the last two trading sessions, USD/CAD has posted a gain of nearly 0.8% as markets anticipate today's decision from the U.S. Federal Reserve.