FX Breakout Monitor: The breakout picture for FOMC reaction
The USD continues to press stronger across the board ahead of the FOMC meeting, which looks a pivotal risk event for the ability of the greenback to find further momentum here. Elsewhere, we are noting that the coronavirus outbreak is pressuring currencies like the Aussie and select EM currencies that are heavily exposed to Chinese demand for their commodities exports.
Copper points to more market weakness ahead
While global stocks are trying to recover we maintain a close focus on copper and other pro-cyclical commodities in order to gauge the economic impact of the current virus outbreak.
FX Update: Dissonance across markets ahead of FOMC
Markets are trying to stabilize and recover from coronavirus fears, with major equity markets in a buoyant mood once again, while commodities markets and some currencies have yet to show much of a sigh of relief. Meanwhile, we have an FOMC meeting dead ahead, with the USD perched on the edge of breaking stronger and the focus on how the Fed will treat its balance sheet growth from here.
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