A wait-and-see mood ahead of the U.S. FOMC meeting
26.01.2022
- U.S. FOMC Policy Rate and Statement Release
- France: Consumer Confidence Index
Yesterday, the three major U.S. stock indices all fell, resulting in a market environment characterized by lower stock prices, flat interest rates, and higher oil prices. Cryptocurrencies, which had been on a downward trend, rebounded, with BTC/USD recovering to the $37,800 range. However, the fear index (VIX) continues to rise and is currently hovering around 31.1. Gold extended its gains, reaching the $1,847 range.
In the foreign exchange market, the GBP/USD pair, which had been falling against the U.S. dollar, halted its decline and recovered to 1.351. The GBP/USD pair is rebounding with support from the 200-period simple moving average (SMA) on the 4-hour chart, and if it can firmly break above the 20-period moving average (MA) on the 4-hour chart with a solid candlestick body, it is likely to resume its uptrend.
Today’s economic indicators include the French Consumer Confidence Index at 4:45 PM, the U.S. MBA Mortgage Applications Index at 9:00 PM, U.S. Wholesale Inventories (flash estimate) at 10:30 PM,at 24:00, the Canadian BOC Policy Rate and Statement, and U.S. New Home Sales; at 24:30, U.S. Weekly Crude Oil Inventories; at 25:00, a press conference by BOC Governor Macklem; at 28:00, the U.S. FOMC Policy Rate and Statement; and at 28:30, a press conference by Fed Chair Powell.We will be closely watching to see how the foreign exchange market reacts to today’s U.S. FOMC results.
Author: Keisuke Sakurai
