IntegrityFX Daily Intermarket Outlook

[fx_analyst]

Ahead of the upcoming Fed interest rate statement the dollar picked up strength, while equities and commodities sold off. The overall sentiment in the market is that the Fed will begin to raise rates before the end of the year. The market is anticipating statements out of the Fed on Wednesday to reflect this change in policy. However, this is an unlikely event. The Fed will most likely reiterate their stance that rates will remain depressed for some time. Despite their rhetoric to the contrary they believe that it is best for the US economy for the dollar to weaken.

However, tomorrow will most likely see today’s price action continue, and easily see the S&P 500 hit 880. If it is able to hit this level and the Fed maintains the depressed interest rates then the rest of the week will see a large amount of risk appetite. When looking for pairs to buy the dollar to buy against, the euro and pound offer up the best choices instead of the Australian dollar and Canadian dollar, which are backed by elevated commodity prices
Daily Currency Pair Analysis
EURUSD: Look to sell this pair in anticipation of a fall in US equities tomorrow.
Potential Trade: EURUSD sell
Optimal Entry: 1.3900
Stop: above 1.4015
Target: 1.3760

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David Leal
Market Analyst
Integrity FX, LLC
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