FOMC: What Next For The US Dollar?

FOMC: What Next For The US Dollar?

2023-06-14 • Updated

Get ready for the latest on the Federal Reserve's upcoming decision. In a surprising move, the Fed is expected to keep interest rates unchanged for the first time since embarking on an aggressive tightening cycle. But hold your horses. It's not a pivot or a pause! 

The Fed may use this opportunity to signal that more rate hikes are on the horizon, depending on how the economy evolves, financial stability, and inflation trajectory. With a mixed bag of economic data and lingering uncertainties, caution is the name of the game. While the Fed will likely skip a rate increase this time, they may hint at the need for one or two more hikes by the end of 2023. It's a delicate policy compromise amid strong employment and inflation concerns. Stay tuned for the Fed's policy statement and projections, and listen out for Chairman Powell's press conference. Remember, no extended pause or rate cuts are expected for now. So buckle up and keep an eye on the ever-changing forex landscape!

US DOLLAR - Daily Timeframe


In line with my analysis last week, the US Dollar declined heavily from the pivot zone and resistance trendline. From all indications, the price is expected to continue on that downward path until it reaches the demand zone I’ve marked out - which would be the case if the Fed keeps the interest rate steady at the end of the day. I will watch for a sharp reaction from the marked demand zone before halting my hopes of a bearish continuation.

Analyst’s Expectations: 

Direction: Bearish

Target: 102.660

Invalidation: 103.646

EURUSD - Daily Timeframe


The bullish movement on EURUSD is yet to reach an efficient resistance level. Therefore, as highlighted in the chart above, the only logical poise is to expect a continuation of the bullish movement until the supply zone is reached. If the FOMC rates decision turns out to be dovish, the outlined direction would be the most likely outcome.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.08595

Invalidation: 1.07501

GBPUSD - Daily Timeframe


GBPUSD has reached a crucial resistance level after commencing a solid rally from the 100-Day moving average, which on a regular day would imply a possibility of a bearish movement. However, in this case, we may see the price break clearly above that resistance level owing to the press release from the FOMC meeting later today. The interest rate is expected to play a vital role in the eventual outcome of the GBPUSD forecast.

Analyst’s Expectations: 

Direction: Bullish

Target: 1.27401

Invalidation: 1.25084

USDJPY - Daily Timeframe


USDJPY is inching closer to a major rally-base-drop supply zone and has been rejected from that area recently. Pending the release of the Fed interest rates figures, I believe we will see a decline of buying pressure from the USD, leading to a bearish momentum overall.

The confluences for this position include;

  • The resistance trendline
  • The rally-base-drop supply zone, and
  • The previous rejection from the supply zone

Analyst’s Expectations: 

Direction: Bearish

Target: 136.494

Invalidation: 141.014


The trading of CFDs comes at a risk. Thus, to succeed, you have to manage risks properly. To avoid costly mistakes while you look to trade these opportunities, be sure to do your due diligence and manage your risk appropriately.


You can access more of such trade ideas and prompt market updates on the telegram channel.


XAUUSD: Will Gold Continue to Rally?
XAUUSD: Will Gold Continue to Rally?

Last week I gave a trade idea on XAUUSD with a target around the $2,020 price line. At the time of writing, XAUUSD already exceeded the target and I’m sure that would leave a lot of people wondering what to expect next. Below, I have presented my view of how I expect the price action to turn out in the meantime.

AUD: Trade Ideas
AUD: Trade Ideas

Last Tuesday, the Australian dollar experienced its steepest drop of the year, falling by 1.18%, following higher-than-expected US inflation figures, which boosted the US dollar. However, the Aussie has since rebounded and is now trading at a two-week high against the US dollar. Investors are...

NZD: The Week Ahead
NZD: The Week Ahead

Commerzbank's analysis suggests a brighter outlook for the New Zealand Dollar (NZD) in the coming months despite recent downward pressure. Factors like broader U.S. Dollar strength and domestic issues have kept the NZD below last year's highs. However, robust labor markets in both New Zealand and Australia and an expected...

Latest news

XAUUSD: Bears Prepare To Takeover
XAUUSD: Bears Prepare To Takeover

On Friday, the gold price (XAUUSD) retreated from a recent two-week high, facing selling pressure. This decline was driven by hawkish minutes from the FOMC meeting, indicating the Fed's reluctance to cut interest rates. Elevated US Treasury bond yields, supported by a "higher-for-longer" narrative, further weakened demand for gold...

Deposit with your local payment systems

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.


A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Next callback request for this phone number
will be available in

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later

Don’t waste your time – keep track of how NFP affects the US dollar and profit!

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera