James Stanley

It’s been a bearish year so far for the USD although the currency has generally shown bullish responses to FOMC meetings. The big question now is whether it can finally find some follow through or whether this is another rally that sellers will fade.

Gold bulls have made a statement with the rally from last February’s low below the $2k level. The question now is whether a crowded trade can continue to run the breakout at historically overbought levels.

Tomorrow brings a vitally important Federal Reserve rate decision and the driver will probably be the bank’s dot plot matrix as the Fed updates their projections for the rest of the year.

USD/CAD bears have remained in control and as we walk into the Wednesday Fed meeting, the pair remains one of the more attractive venues for USD weakness scenarios.

The US Dollar broke down to a fresh three-year low this week, and EUR/USD broke out. The big question now is whether the Fed lays the groundwork for rate cuts in the second-half of the year.

Stocks are up about 25% from the April lows and buyers are back at it today following yesterday’s pullback. The FOMC meeting for next week brings a big risk factor for the trend.

EUR/USD finally pushed through the 1.1500 level and has set a fresh three-year high this morning. The question now is whether the trend can continue through next week’s FOMC meeting.

USD bears have had an open door to press fresh lows after this morning’s CPI data came in below expectations. So far, they’ve been thwarted.

USD/CAD sellers have been showing signs of stall after May’s hold of 1.3750 and now June’s support 100 pips lower. Can USD/CAD force a pullback before resuming the larger trend?

Tomorrow’s CPI release is big as it’s expected to be a change of pace, following three consecutive months of drawdown in YoY headline CPI figures.

USD/JPY has seen price action narrow into a triangle and the CPI report will probably have a big impact on the major pair. EUR/JPY and GBP/JPY are both highlighting bullish breakout potential.