Dollar Awaits Crucial June FOMC marginally higher

13 / 06 / 2018
Trading is risky and your entire investment may be at risk

The greenback rose on Tuesday in anticipation of hawkish FOMC later tonight, and it was bid on Wednesday as well, rising slightly and trading around 94.00 for the dollar index.

Yesterday’s inflation numbers surprised on the upside and the year-on-year CPI inflation rose significantly to 2.8% in May from 2.5% in April. The core indicator also advanced to 2.2%. The greenback strengthened slightly after these numbers.

The focus now turns to the outcome of the FOMC meeting. While the fed is seen rising rates again, it has been already priced in. The key focus would on updated economic projection, especially the so-called ‘dot-plot’. Any hints of more than 3 rate hikes already priced in the market should be positive for the greenback.

The dollar index managed to defend previous highs of 93.50 and jumped higher, which is a sign of the continuing bullish trend. The next resistance now stands around 94.25 and if bulls will be stronger, we may see a rise toward the actual cycle highs near 95.00.

On the downside, should the FOMC sound dovish, the greenback could decline to the mentioned support of 93.50 and if not held, further deterioration to the 93.00 level could occur. In all cases we strongly recommend to have rigorous money and risk management.

Disclaimer: The content of the Reports constitutes Marketing Communication and does not constitute Investment Advice or Investment Research or an offer for any transactions in financial instrument. The content of the Reports represents the view of our experts on a generic basis, and does not take into consideration individual readers personal circumstances, investment experience or current financial situation. In addition, the Reports have not been prepared in accordance with legal requirements designed to promote the independence of Investment Research, and are not subject to any prohibition on dealing ahead of the dissemination of Investment Research. Readers using the Reports should consider the possibility of encountering substantial losses. The past performance is not a guarantee of future results. Therefore, Goldenburg Group Limited shall not accept any responsibility for any losses of traders due to the use and the content of its Reports.