The Australian economy has been on a steady recovery path, and now we have a very symbolic confirmation that S&P ASX 200 is about to cross 7000!
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
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In this article, you'll find the latest news and tech analysis of EUR/USD, gold, and GBP/USD!