The crypto market keeps recovering. Bitcoin has broken above $57,000. The way up to $60,000 is open now!
The USD may be triggered by the Fed
The Federal Open Market Committee will make its statement and announce the interest rate on July 29, at 21:00 MT time. Half an hour later, the bank will hold its regular press conference with the Fed Chair Jerome Powell.
Instruments to trade: EUR/USD, GBP/USD, USD/JPY
After buying a significant amount of bonds worth trillions of dollars to support the economy, the Federal Reserve stands at a crossroads. Should the regulator unveil more stimulus during the upcoming meeting? That’s the main question, which attracts traders’ attention. On the one hand, we see that the Fed’s actions and the interest rate near zero are supporting the economy and encouraging the markets. On the other hand, rising cases of coronavirus in the US show the economy may come through a lot before a complete recovery. Therefore, further supportive actions, including additional bond purchases and careful policy guidance by the Federal Reserve may be needed.
- If the Federal Reserve is pessimistic, the USD may weaken;
- If the Federal Reserve is optimistic, the USD may strengthen.
The US Inflation Rate (CPI) will be announced on Wednesday, October 13, at 15:30 MT (GMT+3). Traders eagerly await this event as it will impact the USD and thus the vast majority of currency pairs in the Forex market.
The upcoming CPI and the earnings season are the main events in the focus of traders next week. Check out more!
The bullish movement in the stock market is gaining speed, and Bitcoin ETFs are closer than they might seem. What do we need to know for the next trading week?
The Fed is ready to start tapering in November. Since the markets were expecting this and it wasn’t a surprise, the USD slumped allowing risk-on currencies and gold to rally up.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).