Dollar Consolidates As Markets Await FOMC

By ActionForexMarket OverviewJan 28, 2015 05:08AM ET

www.investing.com/analysis/dollar-consolidates-as-markets-await-fomc-240000

Dollar Consolidates As Markets Await FOMC

By ActionForex | Jan 28, 2015 05:08AM ET

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Dollar stays in consolidation against other major currencies as markets await FOMC announcement later today. We do not expect the Fed would change its monetary stance this month. Yet, the FOMC meeting provides a chance for policymakers to communicate its assessment of strong USD and weak oil prices on domestic and global economic developments. Market speculations of Fed tightening have reduced of late with fed funds futures for end-2016 falling nearly -40 bps since late December. This could be due to recent monetary easing from the ECB and BoC, as well as some disappointments from US macroeconomic data.

The dollar index retreated after hitting as high as 95.48 and more consolidations would likely be seen. But near term outlook will stay bullish as long as 92.15 support holds and current up trend is expected to extend higher. Above 95.48 will target long term fibonacci level of 95.85, 50% retracement of 121.02 to 70.69. And sustained break there will pave the way through 100 psychological level to 61.8% retracement at 101.79 in medium term.

US Dollar Index Chart

In Australia, headline CPI eased 1.7% yoy in 4Q14 from 2.3% in the prior quarter. The market had anticipated a milder slowdown to 1.8%. RBA’s trimmed mean CPI moderated to 2.2% (in line with expectations) from 2.5% in 3Q14, while the weighted median eased to 2.3%, compared with consensus of 2.2% and 2.6% in 3Q14. Inflation in Australia has been soft, indicating the transition from an economy driven by massive investment in the mining industry to one focusing on non-mining activities has not been that promising. We do not rule out the chance that RBA would surprise the market by announcing a rate cut in February. Staying in Asia Pacific, the RBNZ meeting would be held tomorrow with no change on monetary policy expected.

Elsewhere, German import price index, Gfk consumer sentiment and Swiss UBS consumption indicator will be released in European session.

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Central Banks

Interest Rates

Next Meeting

FED

4.50%

Mar 19, 2025

ECB

2.65%

Apr 17, 2025

BOE

4.50%

Mar 20, 2025

SNB

0.50%

Mar 20, 2025

RBA

4.10%

Apr 01, 2025

BOC

3.00%

Mar 12, 2025

RBNZ

3.75%

Apr 09, 2025

BOJ

0.50%

Mar 19, 2025

CBR

21.00%

Mar 21, 2025

RBI

6.25%

Mar 10, 2025

PBOC

3.10%

BCB

13.25%

Mar 19, 2025

US 30	42,556.5	-245.0	-0.57%
US 500	5,731.6	-38.6	-0.67%
Dow Jones	42,801.72	+222.64	+0.52%
S&P 500	5,770.20	+31.68	+0.55%
Nasdaq	18,196.22	+126.97	+0.70%
S&P 500 VIX	23.37	-1.50	-6.03%
Dollar Index	103.71	-0.11	-0.10%

Crude Oil WTI	66.77	-0.27	-0.40%
Brent Oil	70.36	+0.90	+1.30%
Natural Gas	4.691	+0.292	+6.64%
Gold	2,919.81	+5.71	+0.20%
Silver	32.950	+0.141	+0.43%
Copper	4.6958	-0.0142	-0.30%
US Soybeans	1,025.00	-2.25	-0.22%

U.S. 10Y	4.277	-0.041	-0.95%
U.S. 30Y	4.601	+0.022	+0.44%
U.S. 5Y	4.083	+0.025	+0.74%
U.S. 3M	4.303	+0.002	+0.00%
US 10Y T-Note	110.88	+0.33	+0.30%
Euro Bund	127.66	-0.81	-0.63%
10-2 Yield Spread	31.32	+4.15	+15.27%

Apple	239.07	+3.74	+1.59%
NVIDIA	112.69	+2.12	+1.92%
Alphabet A	173.86	+1.51	+0.88%
Tesla	262.67	-0.78	-0.30%
Amazon.com	199.25	-1.45	-0.72%
Netflix	891.11	-15.25	-1.68%
Meta Platforms	625.66	-2.27	-0.36%

Dollar Consolidates As Markets Await FOMC

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