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Will the Fed make the US dollar rise?
The release of the Federal open market committee (FOMC) meeting minutes is scheduled on February 20, at 21.00 MT time. This is a detailed record of the previous FOMC meeting, which provides the insights into the economic and financial conditions that influenced the current monetary policy by the Fed. During the last meeting, the Federal Reserve said it would be "patient" before determining its next rate move. According to the Fed Chair Jerome Powell, the current level of the interest rate is appropriate for the current state of the economy. If the release of meeting minutes contains any hints on the further steps by the Federal Reserve, the USD will be supported.
• If the FOMC is hawkish, the USD will rise;
• If the FOMC is dovish, the USD will fall.
USD’s rally takes a pause, while riskier assets are modestly rising.
We are now past the middle of January, and this means that the largest US companies will report their earnings for the fourth quarter and many of them will provide the results of the entire 2020.
The market optimism waned amid stricter restrictions to control rising coronavirus infections. S&P 500 and Nasdaq dropped from the all-time highs, while the USD jumped higher.
S&P 500 skyrocketed to the all-time high on optimism that Biden’s fiscal stimulus will support economic growth and boost corporate earnings.
PMI reports from the EU, the UK, and the USA will be released during the day!