What’s moving markets ahead of the FOMC decision Market participants don’t seem to be too sure what to make of US trade policy risk, and while we could chalk up lackluster price action to summer doldrums and pre-Fed positioning, it feels more like this is about a lack of clarity around this newer FX market…
A lot of weight being put on the FOMC decision There wasn’t anything overly hawkish in the FOMC statement and maybe that’s a reason to sell the dollar but I don’t think it’s as big of a reason as, say, a full-blown trade war with China.
Officials working on rules of origin This is supposedly a pathway to a NAFTA deal. Mexican officials say the US is now showing more flexibility on autos and other issues.
Concerns about tariffs… The USDJPY has moved below the swing/break area from yesterday at the 111.54-59 area. That weakens the bull run from yesterday and now has traders thinking the 50% at 111.36 and the 100 hour MA at 111.32 might be tested (blue line in the chart below). The 200 hour MA is another…
German Dax fall -0.5% The European stock markets are ending lower in trading today. Concerns about an escalation of tariffs weighed on shares. In other markets as London/Europe look to exit:
Blowing a lot of smoke here Not-so-bold prediction: Republicans aren’t going to shut down their own government ahead of the mid-terms and neither will Trump so we probably shouldn’t be wasting our time on this charade.
Trump likely to make the announcement later The White House says Trump will make an announcement on Chinese tariffs at 3:30 pm ET (1930 GMT) and the WSJ reports it will be a proposal for 25% tariffs on Chinese goods, up from 10% currently under consideration.
Announcement to come at 3:30 pm ET (1930 GMT) The rumor is that it could be 25% tariffs on Chinese goods instead of 10%. If so, it could easily end up stealing the top story of the day from the FOMC.
100 day MA and trend line below. 100 hour MA above There is some recent NAFTA comments that is helping to strengthen the CAD a bit (). see post here Looking at the hourly chart below, the price is trading right around the 1.3000 level and sits between support below against a lower trend line.…
More confirmation We’ve hear this before but the difference here is that it’s coming from a Canadian official. That means leaders from all three parties have basically endorsed the direction on autos.