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


Recommended Content

Editors’ Picks

AUD/USD languishes near multi-year lows below 0.6250 after dovish RBA Minutes

AUD/USD languishes near multi-year lows below 0.6250 after dovish RBA Minutes

AUD/USD remains depressed below 0.6250 early Tuesday after the December RBA Minutes reiterated that upside inflation risks had diminished, which reaffirms bets for a rate cut in early 2025. This, along with concerns about China's fragile economic recovery and US-China trade war, undermines the Aussie and weighs on the pair.

AUD/USD News
USD/JPY eases toward 157.00 after Japanese verbal intervention

USD/JPY eases toward 157.00 after Japanese verbal intervention

USD/JPY has come under renewed selling pressure, easing toward 157.00 after Japanese Finance Minister Kato's verbal intervention. The pair erased early gains, induced by the October BoJ meeting Minutes. However, the downside could be limited as the US Dollar hold the previous rebound. 

USD/JPY News
Gold remains stuck between two key barriers amid thin trading

Gold remains stuck between two key barriers amid thin trading

Gold price is attempting another run higher while defending the $2,600 threshold early Tuesday. In doing so, Gold price replicates the recovery moves seen in Monday’s trading, which eventually fizzled out on a broad US Dollar comeback in tandem with US Treasury bond yields.  

Gold News
Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana dominates Bitcoin, Ethereum in price performance and trading volume: Glassnode

Solana is up 6% on Monday following a Glassnode report indicating that SOL has seen more capital increase than Bitcoin and Ethereum. Despite the large gains suggesting a relatively heated market, SOL could still stretch its growth before establishing a top for the cycle.

Read more
Bank of England stays on hold, but a dovish front is building

Bank of England stays on hold, but a dovish front is building

Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.

Read more
Best Forex Brokers with Low Spreads

Best Forex Brokers with Low Spreads

VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.

Read More

Majors

Cryptocurrencies

Signatures