Forex Signals Brief June 15: Hawkish FED Dot Plot Brings USD Buyers Back

Yesterday’s Market Wrap

Yesterday started with the UK GDP figures which showed growth again and the GBP rallied higher toward 1.27 as Bank of England remained hawkish. In the US session we had the producer inflation report form the US which showed a slowdown, giving the USD another reason to slide lower ahead of the FED rate decision.

The FED kept interest rates on hold at 5.25% as expected, but the dot plot was more hawkish. The dot plot indicated that the median of policymakers see rates at 5.6% at year end. That would imply two more rate hikes before the end of 2023. That sent the USD 50-70 pips higher across the board, after two days of retreating lower.

Today’s Market Expectations

Today started with the GDP report from New Zealand, which showed an improvement in Q1, coming from a 0.6% contraction in Q4 of last year, which was welcomed by the NZD. Employment remained steady in Australia during May as today’s numbers showed while China’s industrial production slowed down. Later the highlight of the day will be the ECB meeting which is expected to raise rates by 25 bps to 4.00% although markets have anticipated this and a hawkish statement.

Yesterday the price action was decent across the board, with the USD falling initially after the softer PPI inflation numbers. But then the situation reversed and USD buyers returned after the FED dot plot was hawkish, despite keeping rate on hold.

MAs Continue to Keep GOLD Down

XAU/USD – H4 chart 

Booking Profit in AUD/USD 

Cryptocurrency Update

BITCOIN Sliding Lower

BTC/USD – Daily chart

ETHEREUM Buy Signals Hitting SL After the FED Meeting

ETH/USD – Daily chart