How Energy Crisis Affects German PMI August 23, 2022, 10:30 GMT+3 Germany will publish Flash Manufacturing PMI data on Tuesday, August 23, at 10:30 MT time (GMT+3)…
Preview into the FOMC meeting
Pay attention: the FOMC meeting is today at 21:00 MT time
Why is it so important?
No changes to the interest rate are expected. The Fed will publish the statement, which will contain the commentary about the economic conditions, discuss the economic outlook and offer clues on the future path of the monetary policy.
The recent comments by policymakers on a rate cut later this year increased worries in the market.
In addition, various inflation measures dropped below the 2% target and raised concerns over the rate cut even more.
What to watch?
- If the dovish scenario is confirmed, we may see the revision of the inflation forecasts to the downside.
- Also, we expect the shift in dot plot to the expectations of one rate cut by the end of the year.
As the dovish expectations are already priced in, any hawkish comments by the Fed Chair Jerome Powell will bring positive momentum to the USD. On the other hand, strong dovish tone of the statement will weaken the greenback.
On the H1, the pair has been awaiting the FOMC meeting. It has been trading between the resistance at 1.12 and 1.1188 since the beginning of the trading day. Hawkish surprise from the Fed may pull the pair below the 1.1188 level. The next levels in focus for bears lie at 1.1177, 1.1162 and 1.1147. If the USD weakens today, bulls will break the resistance at 1.12 and target the next levels at 1.1211, 1.1222 and 1.1242.
On the same timeframe, the USD rose against the JPY at the beginning of the day but was not able to stick near the 100-hour SMA. At the moment of writing, the pair has been moving towards the support at 108.35. The next support levels are placed at 108.28 and 108.24. On the other hand, bulls keep their eyes on the resistance level at 108.44. If it is broken, the pair will rise further where it will face the 108.49 and 108.53 levels as resistances.
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!
The volatility that the markets experienced last week promises the second tidal wave! What should your favorite assets anticipate during the first week of February?
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.