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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 70% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.

EUR/USD, GBP/USD and USD/CAD amid hawkish Fed forecast

​​Outlook on EUR/USD, GBP/USD and USD/CAD as US dollar gets boost from hawkish Fed forecast.

Dollar Source: Bloomberg

​​​EUR/USD comes off near three-week high

EUR/USD is seen coming off Wednesday’s $1.0864 near three-week high as the US dollar got a boost from the Federal Reserve (Fed) raising its terminal rate forecast to allow room for two additional rate hikes.

​Ahead of today’s European Central Bank (ECB) expected 25 basis-point (bp) rate hike to 3.5% the cross is retesting its $1.0804 mid-February high, a fall through which could lead to the 8 June high at $1.0787 being revisited, perhaps the next lower $1.0779 early June high as well.

​Only a rise above $1.0864 would put the 55-day simple moving average (SMA) at $1.0879 on the map.

EUR/USD chart Source: IT-Finance.com
EUR/USD chart Source: IT-Finance.com

​GBP/USD drops back from its 14-month high at $1.2699 on hawkish Fed

GBP/USD's rally to a 14-year high at $1.2699 paused on a stronger greenback as any lingering hope of a rate cut this year seems to have gone following Wednesday’s Fed meeting.

​A slip through Thursday’s $1.263 low could put the $1.260 region back on the cards which incorporates Monday’s $1.2599 high.

Further minor support sits between the April peak and the early-June high at $1.2546 to $1.2544.

GBP/USD chart Source: IT-Finance.com
GBP/USD chart Source: IT-Finance.com

​USD/CAD recovers from four-month low as Fed keeps rates unchanged

USD/CAD's slide to its C$1.3273 four-month low stalled as the Fed had its “skip” and kept the Fed funds rate unchanged at 5.00% to 5.25%. This compares to the Bank of Canada (BoC) 22-year high rate at 4.75%.

​Major support between the February and June lows at C$1.3273 to C$1.3263 is expected to hold this week and could lead to a minor bounce towards Monday’s high at C$1.3383.

​Failure at C$1.3263 would push the C$1.3327 November low to the fore.

USD/CAD chart Source: IT-Finance.com
USD/CAD chart Source: IT-Finance.com

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