Introduction:
One of the greatest problem of traders today is the ability to identify trend and when trend is about to change. A skillful trader therefore is one that knows trend initiation, trend continuation and trend termination.
Fundamental Analysis:
US Dollar decreases in value following Powell’s cautionary remarks. After the Federal Reserve keeps
interest rates unchanged at the 5.25%–5.50% range, the USD rises. Members of the FOMC increased the value of
their 2024 interest rate safeguards. Chair Powell’s focus on the health of the job market highlights the Fed’s
cautious stance. The FOMC “dot plot” suggests fewer rate reductions in 2024 than anticipated.
As was largely anticipated, the Fed maintained its benchmark overnight borrowing rate on Wednesday, targeting a range of 5.25% to 5.50%. Following a 0.4% increase in March, the UK GDP stagnated in April, reaching 0%.
The aggressive Fed causes the US dollar to rise while the Japanese yen declines. On Wednesday, the US Dollar
gains ground due to the Fed’s aggressive stance, while the Japanese Yen weakens. Because of the prevailing
caution ahead of the BoJ policy decision on Friday, the downside potential of the Japanese Yen may be restricted. The probability of a September Fed rate cut dropped from 69.4% to 61.5, according to the CME
Fed Watch Tool. With declining Treasury yields and less-than-expected US inflation, gold is trading at $2,318—up 0.13%. while the Fed maintains its rate of interest. Chairman Powell underlines the need for ongoing inflation management as the Fed maintains rates and updates forecasts, indicating just one rate decrease in 2024. Gold’s attraction is increased as the US 10-year Treasury yield lowers eight basis points to 4.324% and the DXY declines 0.51% to 104.71.
Economic Calendar:
Analysis of EURUSD:
Analysis of GBPUSD:
Analysis of GBPJPY:
Analysis of XAUUSD:
Analysis of WTI:
Conclusion:
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