US DOLLAR OUTLOOK: FOMC RATE DECISION & QUARTERLY ECONOMIC PROJECTIONS TO SWAY USD PRICE ACTION

  • USD value outlook largely fixated on the Fed announcement due 16 September at 18:00 GMT
  • US Greenback would possibly resume its bearish pattern if FOMC officers like Chair Powell echo free coverage
  • DXY Index may rally if the S&P 500 VIX snaps sharply larger amid renewed danger aversion

The US Greenback will seemingly be entrance and heart on FX dealer radars over the subsequent 24-hours. That is contemplating high-impact even danger dealing with USD value motion because of the Federal Reserve announcement scheduled to cross market wires this Wednesday, 16 September at 18:00 GMT. Periodic Fed conferences have a tendency to depart the US Greenback weak owing to heightened potential for outsized strikes. FOMC officers are anticipated to disclose up to date financial projections (SEPs) tomorrow and Chair Jerome Powell will maintain a press convention shortly after the press assertion launch.

Introduction to Forex News Trading

Introduction to Forex News Trading

Advisable by Wealthy Dvorak

Introduction to Foreign exchange Information Buying and selling

SUMMARY OF ECONOMIC PROJECTIONS FROM THE JUNE 2020 FOMC MEETING

Fed Meeting Summary of Economic Projections Chart US Dollar Outlook

Chart Supply: Federal Reserve

The FOMC is more likely to reiterate the established order of free financial coverage and accommodative monetary situations, however US Greenback foreign money volatilitymay speed up if steering adjustments materially. Along with the headline rate of interest choice and SEPs, market members would possibly emphasize commentary on common inflation focusing on (AIT) and yield curve management (YCC), which can weigh notably on the US Greenback as nicely.

Begins in:

Dwell now:

Sep 17

( 16:09 GMT )

Advisable by Wealthy Dvorak

DailyFX Training Summit: Commerce Your Market – Day 3, Foreign exchange

Register for webinar

Be part of now

Webinar has ended

US DOLLAR INDEX PRICE CHART: DAILY TIME FRAME (13 JUL TO 15 SEP 2020)

US Dollar Index Price Chart FOMC Decision September 2020

Chart created by @RichDvorakFX with TradingView

Headed into the upcoming Fed choice, the US Greenback Index (DXY) seems pinned between technical help and resistance roughly across the 92.75 and 93.35 value ranges, respectively. A topside breakout may carry the 01 August intraday swing excessive into focus whereas a breakout to the draw back may entice US Greenback bears to set their sights on recent two-year lows.

Traits of Successful Traders

Traits of Successful Traders

Advisable by Wealthy Dvorak

Traits of Profitable Merchants

USD PRICE OUTLOOK – US DOLLAR IMPLIED VOLATILITY TRADING RANGES (OVERNIGHT)

USD Price Outlook US Dollar Implied Volatility Trading Ranges for September 2020 Fed meeting

The S&P 500 VIX Index, or fear-gauge, has potential to function a bellwether for US Greenback path because of the typically robust constructive relationship held between the 2 anti-risk belongings. Choices-implied buying and selling ranges are calculated utilizing 1-standard deviation (i.e. 68% statistical likelihood value motion is contained throughout the implied buying and selling vary over the desired timeframe). In different phrases, options-implied buying and selling ranges of technical help and resistance outlined above are estimated to comprise spot value motion 68% of the time.

Maintain Studying – Dow Jones Worth Forecast: Massive Assist Holds Forward of FOMC

— Written by Wealthy Dvorak, Analyst for DailyFX.com

Join with @RichDvorakFX on Twitter for real-time market perception