The Bank of Japan will be releasing its core CPI measure in a while. Forecasts point to a 0.6% on the year ending August. This marks a modest increase from 0.5% previously.
The economic data during the European trading session is very quiet. This puts the focus on the Fed meeting due later during the NY trading session. Investors expect the Fed to hike rates by 25 basis points at today’s meeting. This would bring the short-term interest rates to 2.0% – 2.25%. It also marks a third rate hike this year.
Fed officials will be releasing the staff economic projections and the dot plot which will act as a guide on where future interest rates are heading. There will also be a press conference due later with Fed Chairman, Powell.
Expect to see some volatility in the markets during the Fed announcement.
EURUSD intraday analysis
EURUSD (1.1766): The EURUSD currency pair was muted on Wednesday. Price action was muted as the currency pair as seen consolidating above the 1.1745 handle. With the resistance level looming at 1.1960 – 1.1920 the gains are likely to be capped. To the downside, the EURUSD could be seen testing the lower support at 1.1651 if the current support area of 1.1745 – 1.1718 gives way.
GBPUSD intraday analysis
GBPUSD (1.3179): The GBPUSD was seen posting a modest recovery after price action dipped off the 1.3250 resistance. The lower high being formed however could signal another leg to the downside. The support at 1.3028 is likely to be tested in the near term. As long as the support holds, we expect the reversal to eventually test 1.3250 followed by a breakout to the upside.
XAUUSD intraday analysis
XAUUSD (1201.94): Gold prices were seen holding up above the 1196.10 support level. Price action is seen trading flat currently above this level. The resistance level at 1212.20 could be tested in the near term. Only a breakout above this level will trigger further gains to the upside. To the downside, a breakout below 1196.10 could trigger declines down to the 1186.14 – 1183.30 level.