Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
How Сan FOMC Impact USD?
What will happen?
The Federal Open Market Committee, a committee within the Federal Reserve (the Fed), will reveal a detailed record of the central bank’s meeting on April 6, at 21:00 MT. The record provides an in-depth understanding of the economic and financial conditions that influenced the Fed members’ vote on setting interest rates. It’s usually published eight times per year, three weeks after the Federal Funds Rate is announced.
How can USD react?
The Fed raised the rate by 25 basis points in its last release. The US economic activity and employment rate keep growing. Inflation remains elevated, reflecting the supply-demand imbalance associated with the pandemic, higher energy prices, and broader price pressures. Moreover, Russia's invasion of Ukraine causes enormous human and economic hardships. The implications for the US economy are highly uncertain. Besides, the invasion and the related issues are likely to put upward pressure on inflation and dampen economic activity in the near term.
The FOMC Meeting Minutes release from February 16, 2022, slightly decreased USD by 182 points.
How to trade on USD FOMC Meeting Minutes release?
Even if we know the Fed Funds rate decision results, some insights can help us understand the Fed’s future policy.
- If the record uncovers more Fed’s hints on policy tightening, the US dollar will rise.
- Otherwise, the US dollar will fall.
Check the Economic Calendar.
Instruments to trade: EURUSD, USDCAD, USDCHF, USDJPY.
Now traders follow the economic events with new vision as inflation in the US seems like decreasing. Let’s see what releases will influence the market due to that factor.
The week will have the biggest event in the US political process over the last two years. How will the elections affect the Forex market? We covered the most important news of this week in this report.
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.