Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
What does the first Fed meeting of 2021 have for the USD?
The Federal Open Market Committee (a department of the Federal Reserve) will post its statement and an update on the interest rate on January 27 at 21:00 MT time. The Press Conference with the Fed Chair Jerome Powell will happen, as usual, at 21:30 MT time.
Instruments to trade: EUR/USD, USD/JPY, GBP/USD
Wow, the first Fed statement of the year! The time flies fast. Another important thing, this is going to be the first statement after the inauguration of Joe Biden. For now, the interest rate is expected to stay at the current level for the foreseeable future as inflation remains low. At the same time, Jerome Powell expressed hopes for economic stabilization soon. With the US dollar strengthening after the long-term fall and the stimulus-friendly policies by Joe Biden, will we see the Fed Chair changing his mind? If he keeps being optimistic, the US dollar may rise to new highs.
- Good comments by the Fed on the economic situation will strengthen the USD.
- Alternatively, bad or cautious news will pull it back to the lows.
Stock indices S&P 500 and Nasdaq are falling for seven days in a row. The New Zealand dollar skyrocketed to almost two-years highs. Fed’s Powell held a meeting yesterday and said that the central bank wouldn’t tight its easing policy anytime soon.
On Thursday, February 25, at 15:30, the initial jobless claims will be published in the US.
The giant chip maker exceeded analysts’ expectations. Even with a global GPU shortage!
OPEC will hold a meeting on March 4, where it should announce its decision on further oil output.
The risk-on is back on the market as investors focus on the projections for a stronger-than-expected economic rebound and the Fed’s pledge to prolong support for the rest of the year.