Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
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.
Last week several important economic updates influenced the Forex market. US preliminary GDP fell less than expected (0.6% actual vs. 0.7% forecast). Below you will find the key events to trade on during the week from August 29 to September 2.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.