The US dollar index keeps rounding above the 103.60 historical support level. The buyers have already defended this level for three weeks, highlighting their interest in the greenback. Thus, buying USD looks less risky right now.
USD: FOMC Meeting Minutes are in focus
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
FOMC Meeting Minutes will be released on January 6 at 21:00 MT time. The FOMC is the Federal Open Market Committee, which is the department of the Federal Reserve. It will publish the record of the previous meeting that took place on December 16, which contains the details of the economic and financial conditions that affected the monetary policy decision. The Fed is one of the world’s most important central banks and its economic projections tend to change the market sentiment and therefore set the new vector of Forex trends. That’s why it’s a must-see for every trader! Wait for the release of the meeting minutes and check the charts.
- If the Fed is optimistic, the USD will rise.
- If the Fed is pessimistic, the USD will drop.
On the H4 timeframe, the US dollar index has formed a bullish falling wedge. At the beginning of the trading session, the price is testing the upper border of this wedge. Thus, in case of a higher-than-expected Core PCE Price Index m/m, the US dollar will skyrocket against other currencies.
Happy Wednesday, traders! We went through the Internet and found the best news for you, take a look!
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
The United States Bureau of Labor Statistics will publish the US Consumer Price Index (CPI) m/m on January 12 at 15:30 GMT+2. The index measures a change in the price of goods and services purchased by consumers.