Forex Preview: Dollar Eases As Focus Shifts To Fed Meeting

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1. Dollar Eases As Focus Shifts To Fed Meeting
The USD finished last week on a weaker stand after President Trump reached a deal to at least reopen Federal government services until mid of February. If a new deal can’t be reached on the border wall, we could be looking at another shutdown next month. On Monday morning the dollar eased versus most of its peers on as investors turned their attention to this week’s Federal Reserve policy meeting, with traders wagering policymakers will signal a pause in their tightening cycle. The Federal Open Market Committee meets between Jan 29-30, and Chairman Jerome Powell is widely expected to acknowledge growing risks to the U.S. economy as global momentum weakens.*

Don’t miss our Live Fed webinar this Wednesday, 30/1/2018 at 18:45. Register here.

2. GBP/USD Deflates From Last Week’s Tops
The cable gained 2.5 percent last week after a report in the Sun newspaper that Northern Ireland’s Democratic Unionist Party had privately decided to offer conditional backing for British Prime Minister Theresa May’s Brexit deal this week. However, Ireland’s Deputy Prime Minister Simon Coveney said on Sunday the backstop was already a compromise drawn up to meet May’s negotiating red lines, and the EU and Ireland were united in the view it “was not going to change”. The news caused the GBP/USD to dip on Monday morning, to last trade at 0.25% lower at $1.3169. It is also important to note that investors are anxiously awaiting news from high-level U.S.-China trade talks on Tuesday and Wednesday to see if the world’s largest economies can reach a compromise that will end their trade war.**

3. Gold Firm At 7-month High
Gold prices held steady on Monday, at a seven-month peak scaled in previous session, on hopes the U.S. Federal Reserve will keep interest rates unchanged during its two-day policy meeting later in the week. Spot gold (XAU/USD) was firm at $1,300.52 per ounce by 9:00 GMT. It is important to note that the Federal Reserve is expected to keep rates on hold this Wednesday, while a weaker than expected NFP report this Friday could push the dollar lower and benefit gold prices***

You can find and trade all of the above mentioned assets on BDSwiss Forex/CFD platforms.

 

This Week’s Most Important Upcoming Events:

Time Cur. Event Forecast Previous
Monday, January 28, 2019
All Day Holiday – Australia Day
14:00  EUR ECB President Draghi Speaks  
14:30  GBP BoE Gov Carney Speaks  
Tuesday, January 29, 2019
15:00  USD CB Consumer Confidence (Jan) 124.0 128.1
Tentative  GBP UK Parliament vote on Brexit deal
Wednesday, January 30, 2019
00:30  AUD CPI (QoQ) (Q4) 0.4% 0.4%
13:15  USD ADP Nonfarm Employment Change (Jan) 175K 271K
13:30  USD GDP (QoQ) (Q4)   2.5% 3.4%
15:00  USD Pending Home Sales (MoM) (Dec) 0.5% -0.7%
15:30  USD Crude Oil Inventories 7.970M
19:00  USD FOMC Statement  
19:00  USD Fed Interest Rate Decision 2.50% 2.50%
19:30  USD FOMC Press Conference  
Thursday, January 31, 2019
01:00  CNY Manufacturing PMI (Jan) 49.3 49.4
08:55  EUR German Unemployment Change (Jan) -10K -14K
13:30  CAD GDP (MoM) (Nov) 0.3%
Friday, February 1, 2019
01:45  CNY Caixin Manufacturing PMI (Jan) 49.5 49.7
08:55  EUR German Manufacturing PMI (Jan) 49.9 49.9
09:30  GBP Manufacturing PMI (Jan) 53.5 54.2
Tentative  EUR CPI (YoY) (Jan)   1.4% 1.6%
13:30  USD Nonfarm Payrolls (Jan) 160K 312K
13:30  USD Unemployment Rate (Jan) 3.9% 3.9%
15:00  USD ISM Manufacturing PMI (Jan) 54.1 54.3

 

This Week’s Upcoming Earnings Reports:

Name Symbol Last Chg. % Next Earnings Date
Caterpillar CAT 136.86 +3.11% Jan 28, 2019
Koninklijke Philips ADR PHG 37.05 +1.79% Jan 29, 2019
eBay EBAY 33.72 +3.28% Jan 29, 2019
Harley-Davidson HOG 36.88 +1.04% Jan 29, 2019
Pfizer PFE 40.64 -0.76% Jan 29, 2019
3M MMM 195.90 +1.76% Jan 29, 2019
Apple AAPL 157.76 +3.31% Jan 29, 2019
Verizon VZ 56.40 -1.17% Jan 29, 2019
Santander ADR SAN 5.020 +1.83% Jan 30, 2019
Siemens AG SIEGn 99.68 -0.64% Jan 30, 2019
Facebook FB 149.01 +2.18% Jan 30, 2019
Tesla TSLA 297.04 +1.90% Jan 30, 2019
Microsoft MSFT 107.17 +0.91% Jan 30, 2019
PayPal Holdings Inc PYPL 94.28 +2.26% Jan 30, 2019
Visa V 138.67 +0.70% Jan 30, 2019
McDonald’s MCD 184.00 -1.80% Jan 30, 2019
Alibaba BABA 159.21 +2.15% Jan 30, 2019
Boeing BA 364.20 +1.66% Jan 30, 2019
DuPont DWDP 57.76 +2.54% Jan 31, 2019
Royal Dutch Shell ADR RDSa 59.17 +0.56% Jan 31, 2019
Tractor Supply TSCO 89.60 +2.29% Jan 31, 2019
BT Group BT 236.70 +0.13% Jan 31, 2019
Amazon.com AMZN 1,670.57 +0.95% Jan 31, 2019
General Electric GE 9.16 +4.33% Jan 31, 2019
BBVA BBVA 5.300 +1.92% Feb 01, 2019
Deutsche Bank AG DBKGn 8.164 +0.41% Feb 01, 2019
Christian Dior DIOR 355.30 -0.53% Feb 01, 2019
Chevron CVX 113.22 -0.26% Feb 01, 2019
Exxon Mobil XOM 71.72 +0.45% Feb 01, 2019
Merck&Co MRK 72.95 -0.30% Feb 01, 2019

 

*Source: FXStreet Jan 28, 2019 2:48 AM ET
**Source: Forbes Jan 28, 2019 3:53 AM ET
***Source: CNBC Jan 28, 2019 03:07 AM ET

 

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