The Fed held rates at 4.50%, matching market expectations. Powell highlighted high uncertainty over the outlook, stressing that tariffs are a significant factor driving inflation expectations.
Economic forecasts saw notable shifts: 2025 GDP growth was trimmed to 1.7% from 2.1%, while core PCE inflation was revised up to 2.8%. The US dollar weakened as the Pound surged, with GBPUSD touching a fresh 4‑month high.
The concern amongst traders and myself is slowing growth and rising inflation.
While the Fed holds rates steady, the USD will weaken, reflecting slower economic activity.
I believe the GBPUSD rally will be short-lived since prices have rapidly increased.
Trend: LSMA moving higher in a sharply vertical fashion
Momentum: Overbought and due for a correction
Japanese Candles: Bullish Engulfing on 1/20 supporting rally - smaller printed candles now
Chart Pattern: None - channel too sharp to draw
Support and Resistance: 1.2650 is Support, 1.3100 is Target
Fundamentals: Next week U.K. CPI and PMI, U.S. GDP
Trade: None - wait for the retracement
Stop: None Target: None Risk:Reward is None
Economic forecasts saw notable shifts: 2025 GDP growth was trimmed to 1.7% from 2.1%, while core PCE inflation was revised up to 2.8%. The US dollar weakened as the Pound surged, with GBPUSD touching a fresh 4‑month high.
The concern amongst traders and myself is slowing growth and rising inflation.
While the Fed holds rates steady, the USD will weaken, reflecting slower economic activity.
I believe the GBPUSD rally will be short-lived since prices have rapidly increased.
Trend: LSMA moving higher in a sharply vertical fashion
Momentum: Overbought and due for a correction
Japanese Candles: Bullish Engulfing on 1/20 supporting rally - smaller printed candles now
Chart Pattern: None - channel too sharp to draw
Support and Resistance: 1.2650 is Support, 1.3100 is Target
Fundamentals: Next week U.K. CPI and PMI, U.S. GDP
Trade: None - wait for the retracement
Stop: None Target: None Risk:Reward is None
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
For more analysis, signals, education, and more sign up for Forex Forecast. It's free.
positionforex.my.canva.site/bio-link-site
positionforex.my.canva.site/bio-link-site
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.