Online Forex broker
2022-08-30 • Updated
This Wednesday, the US Fed announces the interest rate and the monetary policy report.
In terms of the rate itself, no change is expected until the year 2023 – the rate will be held steady at 0.25%. The question is what happens in 2023. In this regard, there are two camps: optimists (they maintain that there are grounds to plan for rate hike in 2023) and “cautionists” (they abstain from affirming that there is certainty to increase the rate).
What are the factors in favor of the US economic optimism?
In fact, that’s the only fundamental factor, and it’s pretty inconclusive as “strong” is a very relative quality prone to change quickly with time. Largely, it is based on the same optimism that see a rate hike as the most likely scenario in 2023.
What are the factors against the US economic optimism?
Therefore, it is, basically, optimism (hopes) against realism (facts and figures). As the US Fed’s Chair Jerome Power is known for clinging to the latter, most observers believe that the coming Fed’s announcement is not going to provide much new information or interpretation of the US economic status - therefore, no major change of perspective is expected.
In such a neutral atmosphere, any subtle tone in the Fed’s commentary may move the USD in either direction. For example, the USD has been strong on the JPY lately, and hawkish outlook will support that strength lifting it to 109.50 and above. Alternatively, a dovish stance may bring it down to lower supports such as 108.00.
The past two years have seen the biggest swings in oil prices in 14 years, which have baffled markets, investors, and traders due to geopolitical tensions and the shift towards clean energy.
After months of pressure from the White House, Saudi Arabia relented and agreed with other OPEC+ members to increase production.
Last Friday’s NFP was disappointing. The reaction of the markets was astonishing. Will it last longer? Let's find out the main trade opportunities for the upcoming week.
In the middle of September 2022, the Canadian dollar has fallen to a 2-year low against the USD
The US dollar index has all chances of reaching the 2000s high of 120.00.
The Consumer Price Index announcement by Statistics Canada is set for release in a few hours will reveal the state of inflation in the Canadian economy
FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.
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!
Beginner Forex book will guide you through the world of trading.
We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.
|
