Ahead of Fed’s statement

Ahead of Fed’s statement

Get ready with us for the most important event of this week! The FOMC’s statement will be out on Wednesday at 21:00 MT time. Most traders have been waiting for it eagerly as it will define the further movement of the most traded currency on the Forex market – the US dollar. After the report, the market volatility will increase and the whole sentiment may change. The USD has already started declining amid the coronavirus hopes and the overall risk-on mood. Will the Fed will be able to reverse USD’s losses? Let’s discuss two possible scenarios.

1st scenario: USD will fall

The common consensus is for the dovish Fed’s statement as the last time the Federal Reserve announced that it would allow inflation and unemployment to run above the standard levels. That meant that interest rates would stay at low levels for even longer, and therefore poor returns would attract fewer investors and push the USD down. That’s why, if this time the FOMC echoes its last report, the greenback will get extra headwinds. In this case, pay close attention to EUR/USD as it may surge to the key psychological mark of 1.1900, and also USD/JPY, which may reach the support of 105.20.

According to Goldman Sachs, “we continue to expect the FOMC to eventually adopt outcome-based forward guidance that delays liftoff until the economy achieves both full employment and 2% inflation, although a stricter inflation criterion is possible too”.

2nd scenario: USD will rise

Anyway, there is still a tiny chance that the Fed delivers a hawkish message, which will underpin the greenback.

TDS claimed that “minimal changes to forward guidance and characterization of QE in the statement; more upbeat tone on the outlook following stronger-than-expected data recently” will drive the US dollar upward. 

TDS set the possibility of this scenario to happen at 13%. In this case, USD/JPY may move to 106.20 and EUR/USD to 1.1760.

Follow the Fed’s statement on Wednesday at 21:00 MT time and catch the market movement!

TRADE NOW

Similar

US Dollar Might Get Under Pressure After These Events
US Dollar Might Get Under Pressure After These Events

Today, two events will shake the US dollar. First, at 16:45 GMT+2, Markit, a statistical company, will release the US Flash Services PMI. Moreover, at 21:00 GMT+2, the Federal Reserve will release its meeting minutes.

Traders Should Know About These Releases
Traders Should Know About These Releases

The G20 summit and the US PPI release gave us a lot of volatility to trade on. Luckily, today’s markets may be even more volatile with new vital releases and geopolitical decisions. The daily news report will surely help you!

Latest news

Chinese workers are on strike
Chinese workers are on strike

  Good morning, dear traders! Hope you’re doing great! Let’s talk about the news that is worth following today!  Key market events: 15:30 MT, CAD GDP m/m 17:00 MT, GBP BOE Gov Bailey Speaks Oil is tensed again Oil rose as China refined its approach…

How to trade the JPY?
How to trade the JPY?

Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:

FOMC Minutes Brought Insights
FOMC Minutes Brought Insights

Hello, dear traders! We hope you have a great day! Let’s see what news is worth following today! Market closing US stock exchanges will be closed due to the Thanksgiving holiday…

Deposit with your local payment systems

Feel the Team Spirit

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.

Callback

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!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

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