US Dollar Index At Fresh Highs Amid Fed Projections
The US Dollar index peaked at 92.44 after the hawkish commends by Federal Reserve. The Fed projections indicated that another rate hike should be anticipated in December.
The Fed rate is now at 1.25% and the next meeting is scheduled for the 1st of November. The US dollar strengthened across the board after the release and there is an upside bias for the greenback today.
Looking ahead for today the Canadian release for Wholesale Sales is expected to drop by 0.7% compared to previous month. The US Jobless Claims are likely to increase by 302,000 compared to previous month increase of 284,000.
The USDCAD is likely to be the major player today. The currency pair stands now at 1.2335, given the uptrend in place and the recent positive news for the US dollar the prices are likely to move towards next resistance at 1.2335, followed by 1.2513.
Next, ECB President Mario Draghi speaks and market participants are likely to follow his speech for interest rate clues. The EURUSD trades at 1.1910 and is mainly in range ahead of the German Federal elections over the weekend. The range boundaries are at 1.2026 and 1.1830.
The Gold is trading in a downtrend, breaching last night the support at 1304 and is currently moving towards next support at 1285, nevertheless the oversold stochastic could limit downside expectations.
The GBPUSD eased from 15-month high at 1.3656 to support at 1.3460. The sterling remains strong and this week the surprisingly better than expected retail sales gave further boost to the British pound. The uptrend is in place and we could see it retesting the peak at 1.3656.