The US Parties Lead the Country to a Default
When will the US go bankrupt? Will it start the market crash unseen before? We have plenty to share with you, so let’s get started.
FOMC Will Discuss the Economic Outlook
What will happen?
Federal Reserve will make a statement on November 3, 20:00 GMT+2. There we will hear about Fed’s view on the current economic situation, tapering plans, and other hawkish or dovish tones. The FOMC usually changes the statement slightly at each release. Traders focus on these changes. In 30 minutes FOMC will hold a press conference that lasts about an hour long and has 2 parts - first, a prepared statement is read, then the conference is open to press questions.
Why is it important?
First, this statement is the primary tool the FOMC uses to communicate with investors about monetary policy. The decisions made this day not only add volatility to the market but also can change the game. For example, when FOMC started to talk about tapering seriously (August-September 2021), S&P 500 had a 6% correction that lasted for more than a month. Second, the questions at the press conference often lead to unscripted answers that create even more volatility.
How to trade on FOMC meeting?
The main affected assets are US 500 (S&P 500) and US 100 because tapering news affects the stock market directly. Also, gold tends to have an inverse correlation with USD, and USD tends to rise on tapering plans.
- If the meeting is rather hawkish – S&P 500 will fall, and USD will rise.
- Otherwise – S&P 500 will rise, and USD will fall.
Check the economic calendar
Instruments to trade: EUR/USD, US 500, US 100, XAU/USD.
Similar
The Sentiment is Bearish for the EUR
The US Consumer sentiment will shake the market today. We are back with more news for you to enjoy!
CPI Wednesday: the Doomsday for EURUSD and GBPUSD?
Today, the US Inflation release at 15:30 GMT+3 will determine the further destiny of the major pairs and gold. The event is highly impactful, as the Federal Reserve will make decisions regarding further rate hikes based on it. Also, we brought you some news about XAUUSD and GBPUSD. Stay tuned!
Latest news
Bank of Canada Surprises Markets
The CAD is dominating the markets after the key rate increase! Read the full report to learn more about trading opportunities with the Canadian Dollar!
Oil prices are in focus today
Saudi Arabia agreed to cut oil production. What will happen with the oil price now?
Nonfarm Payrolls is in Focus Today
The situation on the labor market still looks optimistic. Today we expect the Unemployment rate data. 3.5% is expected.
