FX Markets Slow Ahead Of Fed, BoE and NFP Week
Market activity has been notably subdued recently, not just today, but for the majority of the past week, even amidst significant events like the European Central Bank (ECB) meeting. However, upcoming events such as the Federal Reserve’s (FED) announcements, the Bank of England’s (BoE) decisions, and the Non-Farm Payroll (NFP) report this Friday could inject some much-needed volatility into the markets.
These events hold the potential to either bolster the strength of the U.S. dollar or lead to a pullback from its current resistance levels, as suggested by Elliott Wave analysis, which points to a resistance zone around 104-104.30 on the Dollar Index (DXY).
From an EW perspective, we’re observing ongoing market correction that might become increasingly complex. However, the resistance levels remains at 104-104.50. Should the DXY drop below the 102.50 mark, confirmed by a daily closing price, it could signal an acceleration of bearish momentum for the dollar. Concurrently, the British Pound (GBP), could surge, and even commodity-linked currencies might experience heightened activity.
Additionally, the Swiss Franc (CHF) could see more gains, potentially benefiting precious metals, particularly silver.
