The main market tendency today is that the US dollar is rising against its major peers and riskier assets such as stocks and oil are plummeting.
Does the Fed have any surprises for the USD?
The Federal Open Market Committee will publish the meeting minutes on August 19, at 21:00 MT time.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
The FOMC meeting minutes represents a detailed record of the FOMC's latest meeting. It reveals the economic and financial conditions of the US economy. Based on them, the Fed members make decisions on further steps regarding monetary policy and interest rates. During the previous meeting on July 29, the Fed announced that it would continue its bond purchases to support the economy. In the statement, the regulator also mentioned that the rate would stay as low as 0.25% until officials would be confident about the economy's stability. Let's see more details in the FOMC meeting minutes.
- If the Federal Reserve is pessimistic, the USD may weaken;
- If the Federal Reserve is optimistic, the USD may strengthen.
The European Central Bank will publish the monetary policy statement with the interest rate decision on January 21, at 14:45 MT time.
Joe Biden is going to unveil a Covid-19 relief package of about $2 trillion. After this announcement, the 10-year Treasury yield rose, adding support for the USD.
The US dollar’s weakness offered a boost to emerging-market currencies and oil.