Consumer Price Index, Existing Home Sales, US Fed rate decision - all of these things we will discuss in our new review. Don't miss it out!
Will the US Fed support the USD?
What will happen?
The US Fed will share the Meeting Minutes on May 19, at 21:00 GMT+3.
The main announcement from the FOMC’s side has already been done a while ago: the Fed shared an overall optimistic outlook on the US economic recovery with no intention to move the interest from its current position earlier than in 2023. In the meantime, the regulator is ready to stand by the economy and come to its aid if there is any drawback in the process of recovery. Currently, it goes even in the opposite direction: the recovery seems to be so dynamic that inflation is going overboard. Very likely, we will see many remarks about that in the contents of the Fed’s Meeting Minutes.
How to trade the Meeting Minutes?
Trading the Fed’s Meeting Minutes comes down to answering one question: are the contents pointing to optimistic expectations of sooner recovery, or the Fed is concerned with certain points in the future or present economic disposition. In the first scenario, the USD will potentially rise; in the second – it may drop.
- Optimistic outlook supports the USD;
- Concerns about recovery and inflation press on the USD.
Instruments to trade: EUR/USD, GBP/USD, AUD/USD, USD/CAD
This week may be the most important since the year started as the Fed assess the economic outlook and the US presents fresh NFP readings.
S&P Global, a private banking company, will release a monthly change in British Flash Manufacturing Purchasing Managers Index (PMI) on January 24, 11:30 GMT+2. The index is a leading indicator of economic health as businesses react quickly to market conditions, and purchasing managers hold the most current and relevant insight into the company's view of the economy.
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