Dollar at seven-week highs against the yen
The US dollar is trading near a seven-week high against the Japanese yen, amid a slow recovery in the oil market after attacks on Saudi Arabia. Nevertheless, traders prefer caution in anticipation of the US Federal Reserve meeting, which is expected to lead to another interest rate cut.
Investors are waiting for strong signals from US Fed
On Wednesday morning, the dollar was trading at 108.20 yen, close to a seven-week high of 108.37 yen.
Due to the fact that investors mainly estimate the Fed rate cut by a quarter of a point, attention will be focused on how strong the signals from the US regulator will be in terms of easing their financial and credit policy by the end of the current and the beginning of next year.
Some analysts have warned that the dollar could rebound if the Fed delivers only the low that markets expect. If there are no surprises from the Fed, traders will have to give up their dollar shorts.
Some experts agree that the greatest reaction to interest rate news will be in the USDJPY pair.
The British pound is trading at $ 1.2487, adding to its growth about 0.6% from Tuesday levels.
Over the current month, the British currency strengthened by more than 3%. Its growth accelerated after parliament passed a law banning Brexit without a deal. Last Friday, GBP jumped by 1.3% after the news - later refuted - that Johnson’s allies in Northern Ireland could soften their position on Brexit.
Oil prices in Asia fell after Saudi Arabian Energy Minister said the kingdom was making great efforts to rebuild the oil industry, which had been damaged by drone attacks. At the moment, a barrel of Brent oil is estimated at 64.58 dollars.
Forex trading recommendations
EURUSD: Buy. Entry point – 1, 1063. Take profit – 1, 1078. Stop Loss – 1, 1037.
GBPUSD: Sell. Entry point – 1, 2481. Take profit – 1, 2438. Stop Loss – 1, 2454.
USDCHF: Buy. Entry point – 0, 9939. Take profit – 0, 9960. Stop Loss – 0, 9903.