The USD has moved higher after the Federal Reserve Rates unchanged but said the rates remain higher for longer and increase their expectations for year-end 2024 rate to 5.1% from 4.6% previously. They also kept the expectations for one more rate hike between now and the end of the year in place. The Swiss National Bank and Bank of England also kept rates unchanged. The Swiss National Bank was expected to raise rates by 25 basis points. They snapped a 5 meeting rate hike string. The Bank of England in a 5 – 4 vote also kept rates unchanged after the better-than-expected CPI data yesterday.
Technically,
- The EURUSD is trading down and up and back down in trading today. The 1.0631 – 1.0635 area is a key barometer. The price fell below that area on 2 separate occasions today, but stalled at 1.0616 just above the 38.2% retracement of the move up from the September 2022 low at 1.0610. That level is a key barometer for both buyers and sellers. So far the buyers are holding against the level. On the top side, the 100 hour moving average of 1.0674 needs to be broken to increase a bullish bias.
- The USDJPY is retracing some of the gains seen yesterday after the Federal Reserve rate decision. The Bank of Japan will meet overnight. The price decline had seen the price move below the 100 hour moving average at 147.04. Although the price has moved below that level both yesterday and today and failed on the break to reach its 200 hour moving out of 147.47, the 3rd time may be the charm. Watch at level for bias defining clues in trading today.
- The GBPUSD moved lower after its rate decision and in the process extended below the 61.8% retracement of the 2023 trading range. That level comes in at 1.2314. That level corresponds roughly with the end of May low at 1.0608 and will represent a key barometer for both buyers and sellers. Staying below keeps the sellers more in control. Moving above would disappoint the sellers on the break to the lowest level since March. On the downside the next target comes in at 1.21877.