Today’s FOMC press conference was fairly similar to the previous one where Fed Jerome Powell reiterated the dire situation due to the pandemic. With this briefing, the Dollar has pushed past below this week’s low.
Powell did say the economy improved but there are no thoughts at this time to weaken the current stimulus. Powell said the Fed will use all available tools to stabilize the economy and the current job market. The pandemic is bringing hardship among the majority of Americans which won’t be easing up any time soon.
The US Dollar Index has made a new low for the quarter as the price has successfully breached the low of the month. The next target for the index is the psychological level at 90.000. With further bearishness rightfully expected, longs for the Forex majors and Gold are to be eyed by traders.
Tomorrow is the US GDP release and forecasts have it at 6.8% which is a considerable bump from the previous result of 4.3%. If this forecast is correct, the Dollar may find some support. A bearish result would otherwise fast-track the visit to 90.000.
Directory:
- Sign up for a Free Membership.
- Login to watch full recorded webinars in our Forex Trading Room.
- Chat with our traders in the Community Discord Server.
- Read yesterday’s breakdown: Bitcoin and Ethereum Set to Move Higher as Dollar Moves Lower
