… Looking forward, if the economy evolves broadly as expected, policy will move over time toward a more neutral stance. But we are not on any preset course. The risks are two-sided, and we will continue to make our decisions meeting by meeting. As we consider additional policy adjustments, we will carefully assess incoming data, the evolving outlook, and the balance of risks. Overall, the economy is in solid shape; we intend to use our tools to keep it there.
Text of Powell’s Economic Outlook speech
AT ALERTS
The following video shows 3 AT Alerts that hit their targets today.
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GBPUSD Daily
Supports : 1.33650 , 1.33450 & 1.33100
Resistances : 1.34250 , 1.34350 & 1.34950
Cable is struggling for 5 days already with the top and using some Thumb analysis we can expect start of a correction, unless it takes out today 1.34350.
However, Close tonight above 1.33850 would leave an opportunity for one more leg Up and test of 1.34950.
A look at the day ahead in U.S. and global markets from Mike Dolan
The final day of another punchy quarter for U.S. stocks has proven a more volatile affair overseas: China’s stellar stock recovery has added another whopping 8% pre-holiday, while Tokyo’s swoon on the new Japanese prime minister jarred in the other direction.
For Wall Street, Federal Reserve Chair Jerome Powell tees up in Nashville later to give his latest steer on the unfolding Fed easing cycle, with soothing August inflation numbers as a welcome backdrop. The rest of the week looks set to be dominated by soundings on the labor market, the upcoming earnings season and the start of the election-edged final quarter.
USDJPY 4 HOUR CHART – FIBOS
You need to give some leeway to chart levels given the volatility in this currency, such as the brief break of 141.70 that failed to follow through. 142 is pivotal on downside, 142.95 is minor chart resistance.
The sharp down move Friday-Monday has left little in the way of key nearby resistance so let’s take a look at retracements as potential levels USING OUR FIBONACCI CALCULATOR
According to Investopedia, Rebalancing is the process of realigning the weightings of a portfolio of assets. Rebalancing involves periodically buying or selling assets in a portfolio to maintain an original or desired level of asset allocation or risk.
Many international equity managers like to minimize the forex exposure of their equity portfolio and put on forex hedges to reduce that risk. Thus, at the end of each month they adjust the size of their hedges to bring them back into line with the current size of their portfolio.
What does this mean for the forex trader?
GBPUSD 1 HOUR CHART _ Month end or more?
Bounce from 1.3373 double bottom
As posted in our Weekly FX Chart Outlook
GBPUSD remains an outperformer, trading at a level not seen since early 2022.
With the next key level not until above 1.37, use the most recent high (1.3434) as key resistance.
On the downside, 1.3310 is the make or break level, keeping the risk on the high while above it.
Logic says for GBPUSD to make a serious break to a new high, EURUSD would need to establish above 1.12 and/or EURGBP would need to make another leg down.
This Is another case where the end of the week will be more important than how it starts out (quarter end).
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