The Federal Reserve raised the range for the fed funds target rate by another 25bp to 1.75%-2.00%. The interest paid on excess reserves was lifted by only 20bp in order to bring the effective fed funds rate back to the middle of the target range.
The updated Summary of Economic Projections contained some minor upgrades to the growth and inflation outlook. The main change was arguably the upward move of the 2018 dot. The majority of the FOMC now expects a total of four rate hikes this year (up from three), which is in line with our baseline forecast.
This is how MyFXspot.com trades now:EUR/USDTrading strategy: LongOpen: 1.1785Target: 1.2015Stop-loss: 1.1680Recommended size: 1.90 mini lots per $10,000 in your accountShort analysis: The EUR/USD bulls have suffered a setback, as bears managed to register a daily close below the 1.1762 Fibo on Tuesday, 23.6% retrace of the 1.1511 to 1.1840 rise. But the downward move was not continued yesterday and today the pair broke above Tuesday’s 1.1809, which brightens bullish prospects.
GBP/USDTrading strategy: LongOpen: 1.3410Target: 1.3675Stop-loss: 1.3280Recommended size: 1.15 mini lots per $10,000 in your accountShort analysis: Long lower wick on yesterday’s candle looks encouraging. Our long is back in black now.
USD/JPYTrading strategy: Await signalOpen: -Target: -Stop-loss: -Recommended size: -Short analysis: Yesterday’s topside rejection ahead of 111 and the May 23 breakdown session high may concern USD/JPY bulls. We stand aside.
USD/CADTrading strategy: Await signalOpen: -Target: -Stop-loss: -Recommended size: -Short analysis: The USD/CAD continues to find resistance near 1.3050. Global/NAFTA trade tensions are still the main risk factors here. We think no position is justified here from risk/reward perspective.
AUD/USDTrading strategy: Await signalOpen: -Target: -Stop-loss: -Recommended size: -Short analysis: Wednesday’s volatility stopped our long position at the entry level, but long lower wick is a bullish signal. If the pair closes above 14-day exponential moving average, we will get long again.
EUR/GBPTrading strategy: LongOpen: 0.8810Target: 0.8930Stop-loss: 0.8750Recommended size: 1.87 mini lots per $10,000 in your accountShort analysis: Price struggling once again to maintain traction above the daily cloud. A falling 200-day MA line, 0.8831, and a June 27 0.8753 cloud twist are frustrating long plays. But after volatile week, the momentum is turning bullish.
Trading ideas by MyFXspot.com