The market sentiment is mixed. Let’s look at most interesting movements on the market today.
The USD may act on further actions by the Fed
The Federal Open Market Committee will publish the monetary policy decision and announce the interest rate on June 10, at 21:00 MT time.
Instruments to trade: EUR/USD, USD/JPY, USD/CHF
The FOMC stands for the Federal Open Market Committee. This is the department within the Federal Reserve of the United States, which is responsible for the monetary policy decisions. It releases the statement 8 times per year. The document contains the newest decision on the interest rate and policy measures. It also explains what economic conditions affected the decision. Based on the analysis of economic outlook, traders may get clues on future rate cuts.
We don’t expect the Federal Reserve to make any changes this time. However, the Fed Chair Jerome Powell stated several times in May that the regulator would implement more easing measures if needed. That is why we need to follow further news on the stimulus.
- If the Fed is optimistic, the USD will rise;
- If the Fed is pessimistic, the USD will fall.
The Reserve Bank of Australia will publish its statement and announce the interest rate on July 7, at 7:30 MT time.
The overall market sentiment was mixed after the USA recorded the largest increase in virus cases since May 9. The data even offset the better-than-expected NFP.
The risk-on tone is back on the market again. Let’s look at main trading opportunities.