What will happen? The US Q2 Gross Domestic Product will be announced at 15:30 MT time (GMT+3) on Thursday, July 29…
USD to gain from the Fed report?
What will happen?
The US Fed rate will be announced on March 17, at 20:00 MT time.
While the rate itself is not expected to see any change, the economic outlook is what traders will be looking at. On the humanitarian side, the vaccines are expected to drive the recovery towards returning to normal conditions this year. On the financial side, while the economy is on the way to the targeted inflation rate of 2%, the rise of the Treasury yields has been a headline since recently and may be addressed by the Fed’s officials.
How to trade the Fed rate?
If the above projections of a steady economic recovery ahead in the US are confirmed, the USD will likely gain value on traders’ optimism. A more pessimistic outlook would press on the US dollar.
- Optimistic/hawkish Fed projections make the USD rise;
- Modest/dovish Fed report presses on the USD.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
Today the Fed will make a policy statement at 21:00 GMT+3. This event will affect all the currency pairs with the USD and thus almost the all Forex market!
The overall market sentiment is risk-on. The S&P 500 index (US 500) is getting close to the all-time high. Oil is recovering quickly from its recent losses.
What events to follow and how to trade during the week of July 2-6?
EUR/USD retraced to 1.1870 after breaking out this level. It should be just a natural sell-off ahead of the further rally up.
The Fed held a much-awaited meeting yesterday. The bank hasn’t made any policy changes. As a result, the USD weakened and EUR/USD rocketed. Jump in to know all the latest news!