CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 76.09% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

76.09% of retail investor accounts lose money when trading CFDs with this provider.

What Lies Ahead with the FED?

Published: 12.10.2022
by Joseph Jeffriess

Hi, and welcome to Wednesday’s update. Today we are looking at the USD, and it’s hard not to focus on the dollar with all the key news that’s on the way.

From tonight, 11:30 local time (AEDT), we have PPI followed by the Fed minutes at 5:00 am and US CPI data at 11:30 pm to cap it off. The CPI data being released will be both the M/M and the Y/Y.

This could be an important period for the markets. The last Fed minutes shocked the markets, and CPI came in hotter than expected. These surprises led to extended moves lower on risk markets and solid a rally on the USD. Will we see a repeat this time?

In today’s video, we run over the USD and USDCAD, highlighting levels we’re keeping an eye on. For instance, we are starting to see a small bull trap on the USD and new resistance developing on the USDCAD.

As noted in today’s video, it is going to come down to what’s released. CPI beats expectations. Fed remains hawkish we see the USD rallying. If CPI misses and the Fed message is not as hard as we have seen, we could see some selling and a move higher from risk markets like we saw just over a week ago.

It is definitely going to be an interesting period to watch traders from now until Thursday night local time.

USD Analysis Video

We like to hear from you, so please feel free to drop us a comment. We also run weekly webinars with guest analysts.

Please subscribe to our Youtube channel and to our newsletter to stay up to date.

* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.

Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.

Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.