Oil prices are rising while the US government is on the verge of shutting down. How will it affect the market?
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
Welcome to the first week of October! As usual, at the start of the week, we are looking for valuable insights that will bring us profits in trading. Let’s observe the main events.
Inflation in Europe was released better than the forecast. The preliminary fact was published at 4.3%. What's happening in the markets?
XAUUSD fell below 1900 for the first time since March 2023. Meanwhile, the US dollar index gives a bearish signal. Read the full report to learn more!