Federal Reserve’s meeting
The Federal Reserve will deliver its monetary policy statement at 21:00 MT time on June 14.
At the last meeting in May, the Fed refrained from raising rates but downplayed the weak Q1 economic growth figures putting a special emphasis on the strength of the labor market data. Thus, the central bank signaled readiness to increase rates 2 more times this year after March rate hike.
The market is expecting a rate hike this time and such outcome is already priced in the US dollar’s exchange rate. As a result, the actual rate increase will support USD, but won’t give it much fuel for a rally. We will see a significant rebound of the US currency only if the Fed’s Chair Janet Yellen hints at further rate increases during her press conference. On the other hand, the regulator’s cautions over deteriorating outlook of the US economy would hurt the greenback.