Last week was very interesting for the markets, as we saw the releases of the US Inflation and Disney’s earnings report. So let's see what we should await this week!
Key Market Driver: FOMC Statement
What will happen?
The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3). FOMC’s comments will hugely affect the US dollar and thus all the pairs with the USD and US indices such as S&P 500 (US500), Nasdaq (US100), etc. This committee will discuss what time to start reducing bond buys and hiking interest rates.
Why is it important?
All the market participants are waiting eagerly for this moment as it will bring volatility to the markets. However, most analysts don’t expect any hawkish moves from the Fed this time as the US Inflation Rate came out lower than expected and it can ease pressure on the Fed.
Last time, the Federal Reserve was dovish. Therefore, the USD weakened and EUR/USD surged by 300 points only in 1 hour! After that, EUR/USD continued rising further as the Fed meeting has a long-term effect on the markets.
How to trade on the FOMC Statement?
- If the FOMC hints at tapering sooner than expected, the USD will rise.
- Otherwise, fall.
Instruments to trade: EUR/USD, GBP/USD, XAU/USD, US500.
The Australian Bureau of Statistics will announce the updated Unemployment Rate and Employment Change data on Thursday, May 19, at 04:30 MT.
The UK Office for National Statistics will publish Consumer Price Index (CPI) data on Wednesday, May 18, at 09:00 MT.
The US Census Bureau will announce Core Retail Sales and Retail Sales on Tuesday, May 17 at 15:30 MT.