Forex Daily Forecast, Analysis and Prediction

As expected volatility was a dominant feature of the NZD/USD as the U.S. Federal Reserve policy was anticipated and acted upon yesterday.

The price of gold fell strongly after the US Federal Reserve announced plan to end asset purchases and start with three interest rate increases in 2022.

Despite the high inflation figures in Britain, the GBP/USD currency pair fell to the 1.3171 support level.

The Federal Reserve's decision to end its purchase program and raise US interest rates next year was priced in by the markets, which prompted the EUR/USD to increase its losses to the 1.2221 support level before rebounding and settling around the 1.2290 level as of this writing.

The US dollar crosses got more bullish momentum after the Federal Reserve announced that it would end its asset buying campaign in March and then start raising interest rates soon after.

All commodity currencies are rising strongly.

The Parisian CAC 40 Index initially shot above the €7000 level on Wednesday but then gave back the gains late in the day as we plunged towards the €6900 level.

Now that the Wednesday FOMC meeting has come and gone, it appears that the gold markets have found Powell's statement and FOMC decision to be reasonably bullish.

The silver market initially plunged on Wednesday but then turned around to show signs of life again.

The NASDAQ 100 initially pulled back just a bit on Wednesday but then turned around to rally significantly after Jerome Powell was less hawkish than people had anticipated.

The S&P 500 shot higher after initially dropping on Wednesday as the Federal Reserve was not nearly as hawkish as some people priced in.

Bitcoin markets bounced a bit from the 200-day EMA to show signs of stability, which is exactly what we need at this point.

The Ethereum market fell on Wednesday, but then turned around to show signs of life again as we approach the $4000 level at the time of writing.

The West Texas Intermediate Crude Oil market pulled back a bit on Wednesday to reach down towards the 200-day EMA.

The euro fell a bit on Wednesday as we awaited the results of the Federal Reserve meeting.