EUR/USD Bullish Sentiment Increases: Long At 1.1390
The Federal Reserve signaled it would not hike interest rates this year amid a slowing economy and announced a plan to end its balance sheet reduction program by September. Fed policymakers project GDP growth to slow to 2.1% this year from the previous forecast of 2.3%, while the unemployment rate is forecast at 3.7%, slightly higher than the December projection. Inflation for the year is now seen at 1.8%, compared to the Fed's forecast in December of 1.9%. The U.S. central bank reiterated its pledge to be "patient" on monetary policy, and said it would start slowing the reduction of its holdings of Treasury bonds in May, lowering its monthly cap to USD 15 bn from USD 30 bn.
EUR/USD Broke Above 1.1270, Next Resistance At 1.1327
A key argument for providing the loans is to roll over a previous TLTRO facility and avoid a sudden reduction in the ECB's balance sheet. Market Overview With growth slowing and business confidence fading , the ECB announced new stimulus measures last week to prop up a still-fragile economy, promising to put off raising interest rates and to give banks access to more multi-year loans from the central bank. The ECB said the economy was still far stronger than a few years ago, so any support should be less generous, reflecting healthier fundamentals.
Gold Hinges On Fed Interest Rate Decision
If the FOMC commentary turns out dovish, gold may even break this resistance opening the way to USD 1280. The gold price may show no clear direction until Wednesday, as investors are awaiting clues on the future Fed interest rate path. The nearest level where traders are likely to take profit is located at 26800 pts.
Analysis & Opinion by MyFXspot research on Investing.com - Page 2
1.1370 USD/JPY: short opened at 108.50, take profit at 105.50, stop-loss 1.1255 USD/CAD: short at 1.3350, take profit at 1.3010, stop-loss
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