EURUSD remains under pressure ahead of the FOMC meeting. The key support area to watch today is 1.1680. The currency pair has been moving lower since June, largely due to a broad strengthening in the US dollar.
In the short term if the pair break below the support 1.1700 the next immediate downside area is to watch is near 1.1680/60. On the other side, if the price break and closes above 1.1750, the next level is to watch is 1.1770 and then 1.1800.
US stock futures struggling to find the upside momentum as investors remain cautious ahead of the US Federal Reserve's policy meeting. Market participants expect the Fed to make a formal taper announcement in November, possibly starting in December at a pace of USD 15 billion per month.
Crude oil prices climb to a fresh session high on Wednesday boosted by better-than-expected API inventory data. The data showed the US crude stocks fell by 6.108 million barrels in the week ended September 17th of 2021.
In the currency market, On the other hand, the dollar index trading unchanged on Wednesday. The safe-haven currency remains supported by the concerns regarding the health of Chinese property tycoon Evergrande, crippled by over $300 in accumulating debt.
The safe-haven metal holding the previous session gains. Moving ahead, the gold trades should closely monitor Wednesday’s FED decision for clues on the timing of forthcoming changes to Fed policy settings.
On the data front, the Bank of Japan decided to keep its monetary policy unchanged. The bank left its key short-term interest rate unchanged at -0.1% and kept the target for the 10-year government bond yield at around 0%.
The central bank expects the level of economic activity to remain weak, especially in the face-to-face service sector, heavily affected by the pandemic and the continuing states of emergency
Moving ahead today, the important events to watch:
US – Existing home sales: GMT – 14.00
US – EIA crude inventory data: GMT – 14.30
US – FOMC interest rate decision and statement: GMT – 18.00
Worldwide, more than 224 million people have been confirmed infected and more than 4.6 million have died. The United States has confirmed over 40 million cases and has had more than 659,900 deaths from COVID-19, the highest totals in the world.
GBPUSD: The currency pair hits a fresh weekly low of 1.3630 on Wednesday. The currency pair needs to stay above 1.36; otherwise. 1.3560/40 may be visible soon.
The important levels to watch for today: Support- 1.3600 and 1.3580 Resistance- 1.3660 and 1.3690.
GOLD: The precious metal trades steady above $1770. If the bullish momentum continues then the next upside level is to watch $1782 and $1788. On the downside, any meaningful pullback now seems to find some support near the $1766 zones, below which the slide could further get extended towards the $1758/50 regions.
The important levels to watch for today: Support- 1766 and 1754 Resistance- 1782 and 1790.
Quote of the day- “A lot of people get so enmeshed in the markets that they lose their perspective. Working longer does not necessarily equate to working smarter. In fact, sometimes it is the other way around.” - Martin Schwartz.