Partner Center Find a Broker

Powell and his gang are up this week!

Will they inspire a dollar rally? Or will traders want to take on riskier assets after the event?

Let’s take a look at the event that might rock the Greenback’s price action this week:

FOMC statement and presser (Sept 16, 6:00 pm GMT)

  • The U.S. Federal Open Market Committee (FOMC) is expected to maintain its policies in September
  • The Fed will also print its latest dot-plot projections and revised GDP and inflation estimates
  • After hinting that the Fed is willing to tolerate hot inflation in favor of economic activity, traders will look to Chairman Powell to provide hints or details on what can prompt the Fed to change its monetary policies

Closely watched data releases

  • Industrial production (Sept 15, 1:15 pm GMT) could gain by another 1.0% after 3.0% uptick in July
  • Retail sales (Sept 16, 12:30 pm GMT) to print at 1.0% (from 1.2%) while core retail sales could inch up by another 1.2% (from 1.9%) in August
  • Initial jobless claims (Sept 17, 12:30 pm GMT) seen dipping from 884K to 830K
  • Building permits (Sept 17, 12:30 pm GMT) to improve from 1.48M to 1.5M while housing starts could drop by 5.0% after 22.6% jump

Overall dollar demand

  • Updates on the (lack of) a stimulus deal in Congress could send traders to safe havens like the dollar and yen
  • Continued weakness in the U.S. equity markets can also influence the demand for the safe-haven dollar
  • Escalating trade and geopolitical tensions between the U.S. and China can cause intraday fluctuations among the majors

Technical snapshot

  • Stochastic is flagging USD’s “overbought” conditions against GBP
  • USD may soon hit overbought status against CAD and EUR
  • USD remains in neutral zone against its fellow safe havens
USD Forex Pairs Stochastic from MarketMilk
USD Forex Pairs Stochastic from MarketMilk
  • Daily EMAs reflect the dollar’s short and long-term bearish trends against NZD, AUD, EUR, CHF, and JPY
  • USD/CAD could provide retracement or reversal opportunities on the daily time frame
  • The dollar is still trading under the 200 SMA against the pound
USD Forex Pairs EMAs from MarketMilk
USD Forex Pairs EMAs from MarketMilk
  • USD was most volatile against GBP, NZD, AUD, and CAD in the last seven days
USD Forex Pairs Volatility from MarketMilk
USD Forex Pairs Volatility from MarketMilk

Missed last week’s price action? Read USD’s price recap for September 7 – 11!