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.
Trump dislikes recent American interest rate lifts
On Thursday, American leader Donald Trump unveiled that he generally disliked the Fed’s decision to have interest rates lifted, telling that he was concerned about their probable impact on the American economy as well as American competitiveness.
He told that the Fed tends to lift rates each time the US economy goes up, but he doesn’t like this approach. Nevertheless, he allows them to do what they find to be an ideal solution in this situation.
US leader stressed that he was afraid that the key US bank’s rate lifts might put his country at a sort of disadvantage, while the BOJ and the ECB keep their monetary policy intact.
It wasn’t the first time US leader broke up with a long-standing practice of American presidents staying away from commenting on the major US bank’s policy as well as the value of the greenback, a custom he dared to dismiss.
Then, he told that he fully respects the major bank’s independence and he’s not going to interfere with its decisions.
The USD index cut its revenues after Trump's remarks, while revenues on American Treasury securities reached session minimums. American equities briefly pared dives after news of his remarks.
The main American financial institution has lifted interest rates five times since Donald Trump took office last year, extending the campaign it started in 2015.
In June, the Federal Reserve had borrowing costs lifted in June. On Wednesday, Fed Chair Jerome Powell reiterated his oft-stated opinion that rates are going to resume soaring gradually. By the way, not so long ago Donald Trump dubbed Powell “a good guy.”
The vast majority of Fed policymakers consider the American job market to be close to their full strength. Meanwhile, inflation has recently ascended to the major bank’s 2% objective.
US Retail Sales will be out on October 15 at 15:30 MetaTrader time (GMT+3).
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 United States will release the weekly Unemployment Claims on October 21, at 15:30 MT time (GMT+3).
Great Britain will publish the Inflation Rate on October 20, at 09:00 MT time (GMT+3).
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?