Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
The USD Expects Boost from the Fed
What will happen?
The Federal Open Market Committee (the part of the Federal Reserve) will publish its Meeting Minutes on February 16, at 21:00 MT time. As usual, it will contain the insights from the most recent Fed’s meeting.
Why is it important?
As you remember, the last meeting was quite hawkish. During the previous event, Fed Chair Jerome Powell indicated that the central bank would lift the interest rate in March. The market is pricing in at least five more rate hikes this year. The reasons behind the regulator turning hawkish lie in surging inflation that has already reached 7%. Are the FOMC Meeting Minutes worth following anyway? Let’s have a look at the chart.
How to trade on the FOMC Meeting Minutes?
To trade on the event, you need to wait for the meeting minutes to be published on the official website of the Federal Reserve.
- If the Fed is hawkish, the US dollar will strengthen;
- If the Fed is dovish, the US dollar will weaken.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
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