How to trade this week’s interest rate decisions, central banks in focus, trading short GBP/AUD [Video]

Welcome to this week’s Market Blast Fundamentals. 

I’m Brad Alexander and, on behalf of Valutrades, today we will take a look at EURUSD, GBPAUD, Gold (XAUUSD), and GBPUSD.

The Omicron variant of COVID is the biggest thing on the minds of every economy in the world as every central bank tries to deal with inflation.

We see USD consolidating now, against everything except the Pound Sterling.

GBP is weaker based on the fear of Omicron this winter and a bit of disarray in the UK government.

In fact, our strong versus weak analysis on currencies shows GBPAUD where UK pessimism versus Australian optimism over commodities and COVID might be a good short trade but wait for confirmation.

We will look at GBPAUD from the technical side tomorrow.

Getting back to USD, the markets are waiting for decisions this week from the US Federal Reserve, along with about 19 other central banks around the world.

The most important central banks are announcing Interest Rate decisions this week with the US on Wednesday, the Swiss National Bank and the European Central Bank on Thursday, and Japan on Friday.

Even if these central banks do not change their Interest Rates, we almost always see volatility and you can trade these.

Simply look for counter-trend price action moves, be patient, and trade with the trend off technical levels like support and resistance or trend lines.

This will happen, as well, with the central bank press conferences as investors and analysts will be looking for clues about future movements.

If you want to trade these movements with USD, you can also look at Gold which is also consolidating, but in an overall downtrend.