The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
Big day for Forex market
The FOMC will make a statement on September 16 at 21:00 MT time!
Instruments to trade: EUR/USD; USD/JPY; GBP/USD; USD/CAD
This report is significant as the Fed uses it as a primary tool for communication with investors about the future monetary policy. It includes their decision over interest rates and support measures, which are especially important in times of the coronavirus crisis. They also tell what economic circumstances have led to their resolutions.
Later on, the FOMC will hold a press conference, where officials answer unprepared questions. Therefore, they may unveil some hints for investors, which in turn will lead to fresh market volatility. Market participants usually focus on the overall tone of the statement.
- If the Fed is pessimistic and predicts the recovery slower than expected, the USD will decline.
- Otherwise, if the Fed is optimistic and says that the recovery goes along with expectations or even better, the USD will rise.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?