All eyes on the Fed for the next market move [Video]
Markets covered in the weekly forex forecast: DXY, EurUsd, NzdUsd, UsdChf, UsdCad, GbpUsd, AudUsd, WTI, CadJpy, NzdCad, NzdChf, EurChf, ChfJcoinpy, SPX, RUT, NDX, Nifty, DJIA / Bita
Markets have been calm for the past three weeks as traders and investors await the outcome of the FOMC meeting tonight.
Recently, it was felt that FED chairman Powell will announce the start of tapering in November, but this has been called into question based on recent events, including the situation surrounding Chinese real estate developer Evergrande (which is still at risk of default) Markets this week about contagious fears. Evergrande has reached an agreement with the onshore bondholders but has yet to negotiate terms with the offshore bondholders, the payment of which is due tomorrow (September 23).
In the Weekly Forex Forex Forecast, we outlined several potential moves for both hawkish and low-key results. It seems likely that whichever way the FOMC cards fall tonight, it will likely be the next directional move in the dollar index, and thereby boost markets across the board.