Welcome to Tuesday!
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.
In July, Britain's inflation rate rallied for the first time in 2018, thus leaving many UK households feeling quite squeezed by prices, soaring at nearly the same tempo as their wages…
On Friday, the evergreen buck rallied versus its counterparts after data disclosed that the American economy generated more jobs than anticipated In October, thus backing the Fed’s case to proceed with gradual rate lifts…
On Tuesday, gold rallied because uncertainty over the latest developments in Britain’s departure from the EU backed safe haven demand and traders looked ahead for American inflation data to underpin the Fed’s pledge to remain on hold…