Happy Friday, traders! Are you ready to trade at the end of the week? Here’s what you need to know before you start:
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
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.