Fed cuts rates by quarter point

0 82

The US Federal Reserve cut interest rates by a quarter basis point as anticipated. The short-term Fed funds rates now stand at 2.0%-1.75%. The central bank, however, maintained that it was not moving into an easing cycle. The FOMC’s dot plot showed that about five members thought that interest rates should remain unchanged, while another five approved of the rate cut.

Test your strategy on how the USD will fare with Orbex - Open Your Account Now. 

Eurozone Inflation Unmoved in August

Consumer prices in the eurozone were unchanged in August. Data from Eurostat showed headline inflation rising 1.0% in August on the year. This was the same pace of increase in the month before. Core inflation rate eased to 0.9%. The decline in inflation comes as energy prices fell 0.6% during the period. This reversed the gains made in the month before.

EURUSD Slips Back to Support

The currency pair was seen easing back to the support area of 1.1030. The currency pair looks to be trading within the established range of 1.1091 and 1.1030. We do not expect to see further declines coming along. As a result, the currency pair could remain muted within the said range with a possible breakout to the upside.

EURUSD

UK Inflation Slows to a 32-Month Low

The latest inflation figures from the United Kingdom saw a larger than expected slowdown. Contrary to expectations of a decline to 1.9%, headline inflation eased to 1.7% on the year in August. This follows July’s print of 2.1%. The decline in consumer prices is likely to ease pressure of the Bank of England. However, the central bank will be staying on the sidelines, regardless as it meets later today.

GBPUSD Eases Back After Testing Resistance

The GBPUSD currency pair looks to have ended the gains after price tested the resistance level of 1.2533–1.2511. But we expect to see a firmer retest of this level before the correction begins. The downside support is seen at 1.2328. But this will be confirmed only when GBPUSD manages to move past the recently formed higher low.

GBPUSD

Crude Oil Falls as Saudi Makes a Promise

Oil prices reacted sharply at the start of the week to news of drone attacks wiping out some of the oil production. However, the price of WTI crude oil has been steadily declining since Monday. Saudi Arabia announced that it expects oil production to return to normalcy by the end of this month. Meanwhile, the weekly crude oil inventories showed a modest buildup of 1.1 million barrels.

WTI Could Extend Declines Further

Crude oil prices could extend the decline further as price action tests the support area of 57.50. Following Monday’s surge, the gap is likely to be filled in the near term outlook. The lower support at 54.42 is therefore likely as oil prices look to fill the gap. To the upside, the gains are locked near the resistance level of 61.00

WTI

TradingOil

START TRADING

or practice on DEMO ACCOUNT

Trading CFDs Involves high risk of loss

Leave A Reply

Your email address will not be published.