That day has come, guys! The Fed will hold a meeting at 21:00 GMT+3. It can be a highly impactful event. The markets expect the bank to hint about the timing of tapering.
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
A selloff in stocks stopped. S&P 500 has reversed up from the 100-day moving average. It should be the perfect time to buy the index.
The FOMC, a committee within the Federal Reserve, will hold an important meeting and press conference on September 22 at 21:00 MT time (GMT+3).
Although Jerome Powell’s speech sounded hawkish on Wednesday, September 22, markets did not get scared and the main stock indices got bought back…
Turkey’s central bank governor was at a crossroads: to hold interest rates and take a risk to be fired like it was for three governors before him, or to comply with the president, to cut rates, and to risk the market. Let’s find out, how to react to the rate cut.
The Fed can start tapering already this November, oil is rallying pushing the Canadian dollar up! Jump in to know more!