A Wait-and-See Mood Ahead of the U.S. FOMC Meeting?
26.01.2022
- U.S. FOMC Policy Rate and Statement Announcement
- 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 crude oil prices.Cryptocurrencies, which had been falling for some time, rebounded, with BTC/USD recovering to the $37,800 range. However, the fear index (VIX) continues to rise and is 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 as it finds support at the 200-period simple moving average (SMA) on the 4-hour chart; if it can firmly break above the 20-period moving average (MA) on the 4-hour chart with a real body candle, it is likely to resume its uptrend.
Today’s economic indicators include the French Consumer Confidence Index at 16:45, the U.S. MBA Mortgage Applications Index at 21:00, U.S. Wholesale Inventories (flash estimate) at 22:30, and the Bank of Canada’s policy rate announcement and statement at 24:00,U.S. New Home Sales at 24:00, U.S. Weekly Crude Oil Inventories at 24:30, a press conference by BOC Governor McClem at 25:00, the FOMC policy rate decision and statement at 28:00, and a press conference by Fed Chair Powell at 28:30.We will be closely watching to see how the foreign exchange market reacts to today’s U.S. FOMC results.
