Trading plan for September 17
Bearish pressure on the US Dollar increased after the US inflation figures confirmed price growth slowdown. As a result, market doubts about a potential rate hike on tomorrow’s meeting declined. Fed’s decision will be announced on September 17 at 18:00 GMT, while the Yellen’s press conference will follow at 18:30 GMT. US currency is expected to stay under pressure ahead of the announcement.
EUR/USD jumped above 1.1300, breaking above the local trend line. The market will be dominated by the Fed’s expectations until tomorrow. Euro zone’s economic calendar is plain. Next barrier for the pair lies at 1.1370.
GBP/USD has also profited the US Dollar weakness, jumping to 1.5450. Pound was also supported by the better-than-expected UK employment data. Watch the UK retail sales tomorrow (forecasts are benign). Cable has more potential for growth tomorrow. Resistance – 1.5560 and 1.5700.
AUD/USD pushed higher, moving towards the 0.7200/0.7250 resistance area. We expect a pullback from here. The Fed will clearly cause a volatility surge, but the RBA Governor Stevens will step in with his speech early on Friday. He is unlikely to let the Aussie strengthen solidly.
There are more releases to watch on Thursday morning- New Zealand GDP, BOJ Kuroda speech and the SNB meeting. Fasten your seatbelts – market is going easy-moved tomorrow!