Brad Alexander
FX Large Limited
The US Federal Reserve lowered Interest Rates as predicted, but inflation is still an issue.
Look what happened.
After the cut, Jerome Powell announced that the Fed may slow down rate cuts in 2025 driving US indices much lower.
So, should we buy back in?
This move affected all global stock indices and the good news is that the Nikkei is recovering.
It opened lower this morning but filled the gap quite quickly.
This may signal recoveries in the rest of the world.
The FTSE 100 in London fell as well but this may not be a sensible long trade as price action is in a downtrend and GBP is strong against all currencies except USD.
If we look at the US Indices we have some good candidates for long trades as we see the stochastic oscillator oversold and turning up on the S&P500 and the NASDAQ.
We also saw USD pairs move on a much stronger USD.
The big move in USD also affected Gold as price action broke out of its range.
It rebounded quite quickly and it is back to a key level so we will need to see where it wants to go from here.
As most USD pairs were already moving in favour of the greenback, we only see a reversal possibility on GBPUSD.
On the 4-hour chart, we see the stochastic oscillator looking very oversold after the big fall.
For you Fibonacci fans, we see that price action bounced off a key level and is now at the 61.8% level.
Let’s see if GBP buyers and/or USD sellers can push it higher.
Speaking of GBP, let’s see if today’s Interest Rate decision, where we expect no change, causes volatility.
While we may offer market commentary based on fundamental or technical analysis, we do not offer trading advice and cannot be held liable for any decisions taken by viewers and readers of our material.
Recommended Content
Editors’ Picks
EUR/USD bounces off lows, retests 1.1370
Following an early drop to the vicinity of 1.1310, EUR/USD now manages to regain pace and retargets the 1.1370-1.1380 band on the back of a tepid knee-jerk in the US Dollar, always amid growing optimism over a potential de-escalation in the US-China trade war.
GBP/USD trades slightly on the defensive in the low-1.3300s
GBP/USD remains under a mild selling pressure just above 1.3300 on Friday, despite firmer-than-expected UK Retail Sales. The pair is weighed down by a renewed buying interest in the Greenback, bolstered by fresh headlines suggesting a softening in the rhetoric surrounding the US-China trade conflict.
Gold remains offered below $3,300
Gold reversed Thursday’s rebound and slipped toward the $3,260 area per troy ounce at the end of the week in response to further improvement in the market sentiment, which was in turn underpinned by hopes of positive developments around the US-China trade crisis.
Ethereum: Accumulation addresses grab 1.11 million ETH as bullish momentum rises
Ethereum saw a 1% decline on Friday as sellers dominated exchange activity in the past 24 hours. Despite the recent selling, increased inflows into accumulation addresses and declining net taker volume show a gradual return of bullish momentum.
Week ahead: US GDP, inflation and jobs in focus amid tariff mess – BoJ meets
Barrage of US data to shed light on US economy as tariff war heats up. GDP, PCE inflation and nonfarm payrolls reports to headline the week. Bank of Japan to hold rates but may downgrade growth outlook. Eurozone and Australian CPI also on the agenda, Canadians go to the polls.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.