The market sentiment is mixed. Let’s look at most interesting movements on the market today.
Trade the USD on the extreme volatility
The Federal Reserve will make its monetary policy statement and announce the official rate on December 19, at 21:00 MT time.
The market anticipates the rate hike from 2.25% to 2.5%, as was suggested during November's meeting. If the Fed increases the interest rate, it will be the fourth rate hike in 2018. In addition, the tone of the statement by the Fed Chair Jerome Powell may provide the volatility to the US Dollar. During the last month, a few members of the Federal Open Market Committee pointed on the increased uncertainty regarding the effects of current fiscal and trade policies on economic activity and inflation. Also, they told not to underestimate the current trade tensions with China. These comments made traders worried. The current Fed statement is anticipated to shed light on its future monetary policy.
• If the Federal Reserve increases the interest rate, the USD will rise;
• If the Federal Reserve leaves the interest rate unchanged, 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.