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Tuesday, September 25, 2018

EUR/USD, GBP/USD Bounce from Chart Support Ahead of FOMC

- Today marks the start of the two-day meeting at the Federal Reserve in which the bank will decide upon the September interest rate decision. A 25 basis point hike here is almost a foregone conclusion, and this appears to be already baked into current prices. The bigger question is how confident the Fed will appear to be towards a December rate hike and how hawkish they may be as we turn the page into 2019.
- Both EUR/USD and GBP/USD continue to exhibit varying forms of strength as the US Dollar remains weak. Meanwhile, Yen weakness remains even more prominent than USD-weakness, and this keeps the door open for bullish strategies in pairs like EUR/JPY and GBP/JPY.

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