Heads up, dollar traders!
The FOMC minutes are up for release soon, so we might see more volatility for the Greenback.
Can this mean a breakout for GBP/USD?
Before moving on, ICYMI, yesterday’s watchlist checked out AUD/NZD’s uptrend pullback ahead of the RBNZ decision. Be sure to check out if it’s still a valid play!
And now for the headlines that rocked the markets in the last trading sessions:
Fresh Market Headlines & Economic Data:
U.S. flash manufacturing PMI up from 46.9 to 47.8 vs. 47.4 forecast
U.S. flash services PMI up from 46.8 to 50.5 vs. 47.3 estimate
Dairy prices fell 1.5% in latest New Zealand GDT auction
New Zealand trade deficit more than tripled from 636M NZD to 1954M NZD
Australia’s wage price index rose 0.8% q/q in Q4 2022, previous 1.1% gain
Australian construction work done sank 0.4% q/q in Q4 2022 vs. projected 1.6% increase
RBNZ hiked interest rates by 50bps from 4.25% to 4.75% as expected
RBNZ: Early signs of price pressures easing but core inflation remains high
RBNZ: Still expecting a recession of 9-12 months period
RBNZ: Too early to determine impact of Cyclone Gabrielle
New Zealand credit card spending up from 12.7% to 17.9% y/y in Jan
German final CPI unchanged at 1.0% m/m in Jan as expected
G20 meetings to start today
FOMC minutes at 7:00 pm GMT
RBNZ Governor Orr’s speech at 7:10 pm GMT
FOMC member Williams’ speech at 10:30 pm GMT
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What to Watch: GBP/USD
GBP/USD 1-hour Forex Chart by TradingView
Is that a sketchy double bottom I’m seeing on Cable’s hourly time frame?
If so, the pair might be ready to confirm a potential reversal soon!
Price is inching closer to testing the neckline resistance at the 1.2200 major psychological mark, and a break higher could set off a rally that’s the same height as the chart pattern.
Technical indicators are suggesting otherwise, though. The 100 SMA is below the 200 SMA for now to signal that the path of least resistance is to the downside while Stochastic is heading south.
Then again, we’ve got the release of the FOMC meeting minutes coming up, so fundamentals might steal the show.
In particular, not-so-hawkish remarks might be enough to spur another round of losses for the Greenback, possibly taking GBP/USD higher by a little over 200 pips.
On the other hand, optimistic remarks supporting the likelihood of more Fed rate hikes could allow the ceiling to hold and send the pair back to its lows around 1.1950-1.2000.
In any case, better be ready for price spikes when trading the news with this one!
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