The Fed May Cut Rates: The Dollar Trades Near Recent Lows
FXOpen
The upcoming trading sessions are packed with key events, potentially triggering heightened volatility in major currency pairs. This morning, the Bank of Japan held its meeting, the Federal Reserve will announce its decision this evening, and tomorrow, the Swiss National Bank and the Bank of England are scheduled to meet. This mix of news could either reinforce current trends or lead to sharp reversals.
USD/CAD
As expected, the USD/CAD pair tested the lower boundary of the medium-term range at 1.4470–1.4260. It has yet to break below, as a rebound from 1.4260 allowed buyers to form a bullish “harami” pattern. If 1.4300 remains a support level, the price could strengthen towards 1.4470–1.4400. However, if sellers push the pair below 1.4300–1.4260, a retest of 1.4160–1.4100 is possible.
Key events that could impact USD/CAD pricing in the upcoming sessions:
- Today at 16:30 (GMT+2): US crude oil inventories
- Today at 16:30 (GMT+2): US Cushing (Oklahoma) oil stockpiles data
- Today at 21:00 (GMT+2): FOMC statement
- Tomorrow at 15:30 (GMT+2): Canada’s Raw Materials Price Index (RMPI)
GBP/USD
Yesterday, GBP/USD buyers managed to test the key resistance level of 1.3000. Technical analysis suggests the pair could strengthen towards 1.3100–1.3070 if 1.2950 remains a strong support level. A breakdown below 1.2950–1.2920 could trigger a downward correction towards 1.2850–1.2780.
Key events that could impact GBP/USD pricing in the upcoming sessions:
- Tomorrow at 10:00 (GMT+2): UK average earnings (including bonuses)
- Tomorrow at 10:00 (GMT+2): UK employment change
- Tomorrow at 15:00 (GMT+2): Bank of England interest rate decision
- Tomorrow at 15:30 (GMT+2): Speech by Bank of England Governor Andrew Bailey
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