Highlights from Fed Meeting Minutes

The Fed meeting minutes held yesterday suggested increasing tensions on the outlook for inflation, and how this may affect interest rate hikes in the future. Fed officials are determined to continue raising rates to a targeted level of 2 percent over the long run. They also expressed their concerns on low inflation, which could continue to persist. The Fed has increased its benchmark rate four times since December 2015. Meanwhile, the U.S. is set to release its ADP Nonfarm Employment Change for June and its ISM Non-Manufacturing Purchasing Managers Index (PMI) for June at 12:15 GMT and 14:00 GMT respectively.

source: CNBC, Investing.com

Crude oil recovered some ground on strong demand in the U.S. today, with prices still trading weaker on the commodity market. Furthermore, analysts warned markets that oversupply could continue to drag due to steep drop in the previous session. The U.S. Crude Oil Inventories due today at 15:00 GMT could shed light on possible trends crude futures could follow. The international benchmark Brent crude was seen trading higher by 0.7 percent at $48.13 a barrel at 05:00 GMT today.

Australian equities were seen trading higher on Thursday, with the S&P/ASX 200 edging higher by 0.2 percent. The Hang Seng index and South Korea’s Kospi traded lower by 0.3 percent and 0.1 percent. Cryptocurrencies such as Bitcoin and Ethereum shed losses and the BTC/USD rose to $2,605.1, while Ethereum gained 1.99 percent to $272.81 on the market.

Technical Analysis

EUR/USD

EUR/USD

The EUR/USD pair held weaker on Wednesday morning’s trading hours, however, it successfully picked up momentum as from 15:00 UTC and reached a high level of $1.13532 by 22:00 UTC. Earlier today, the currency pair bounced back from previous session lows, after the release of Fed minutes. It may continue to rise in the upcoming hours, consider using the Long Term tool for this one today.

GBP/USD

GBP/USD

In yesterday’s early trading hours, the GBP/USD pair tumbled as from 02:00 UTC at the 1.29451 level to reach the 1.29199 level by 05:00 UTC. This was followed by a much volatile trend throughout the day. The GBP/USD pair remained unchanged a day ahead of the FOMC minutes, it started trading on a positive note as from 02:00 UTC where it was seen trading at $1.29214, earlier today.

DXY

DXY

The dollar index clearly followed a downtrend on Wednesday, as it tumbled as from the 96.45 level around 13:00 UTC to close this bearish trend by 20:00 UTC at the 96.22 level. Today, the asset initiated its session at 00:00 UTC as it traded at the 96.24 level, but shifted to a much volatile trend. Hovering above the Ichimoku Cloud indicator suggests an uptrend for today, keep an eye.

Things to watch on the market

Tip 1

In regards to events due in the U.S. today, consider trading assets such as the EUR/USD, GBP/USD, AUD/USD, and Wall Street indices on our trading platform.

 

Tip 2

The Brent crude oil-apr16 and the Gold vs Oil pair can be traded once it is made available on the platform.

 

Tip 3

The ASX F-MAR17, Kospi, Hang Seng, Bitcoin and Ethereum are all available for trade on the Classic Binary Options, consider trading these.