Don’t waste your time – keep track of how NFP affects the US dollar!

Data collection notice

FBS maintains a record of your data to run this website. By pressing the “Accept” button, you agree to our Privacy policy.

Join the Facebook community of FBS!

Beginner Forex book

Beginner Forex book will guide you through the world of trading.

Email tooltip

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

FBS Mobile Personal Area

FREE

View
US Interest Rate Slowdown?

US Interest Rate Slowdown?

Information is not investment advice

The US Federal Reserve may refrain from more aggressive interest rate hikes in March due to geopolitical risks after Russia's special operation in Ukraine.

Fed officials, who would still like to begin the process of cutting easy monetary policies caused by COVID-19, say they are monitoring every impact of the conflict on the US economic activity. Since the pandemic started, the central bank has kept its interest rate near zero, so now high inflation in the US has implied that the Fed is likely to normalize it quicker. Earlier in August, St. Louis Fed President Jim Bullard declared that he would support a double rate hike (0.50%) for the next Fed meeting in mid-March. In fact, the Fed has not raised interest rates by more than 0.25% since 2000.

However, economists say the progressing situation in Ukraine brings plenty of doubts in a global recovery the same as the coronavirus issue. Disruptions in Russian oil and gas supplies are pushing up energy prices, and Ukraine's struggling economy is already impacting outcomes and growth across the continent.

In addition, the US Dollar Index can be impacted in any case, whether it’s a coronavirus issue or Ukrainian conflict. The US Dollar Index (USDX) is a measure of the US dollar value against a basket of currencies from most of the US's most important trading partners.

Since November 2021 this index has been fluctuating a lot, the lowest level was 94,540, the highest was 97,465. Most likely, it will continue to move up and down.

Now the resistance level is on 97.750, the support is on 96.500.

2022-02-28_16-09-59.png

Influencing announcements

Some releases influence US Index and USD a lot, which can provoke unexpected fluctuations. There are several of them:

  • Fed Chair Powell statement on March 2-3
  • Unemployment rate and NFP releases on March 4
  • Monthly CPI on March 10
  • Monthly PPI on March 15

 

Still, the inflation rate in the US is 7.5%, which is the highest in 40 years. If the Fed slows down the interest rate rise, it can lead to consequences which are difficult to correct.  

 

Similar

How to Stay Calm and Trade on Uncertainties

Despite the negative news and worrying headlines, we recommend traders to make mental reframing of the situation. This way, you can look at the market from a different perspective. Let’s observe how you can take advantage of the uncertainties and make the fundamentals work for you!

Bewitching predictions for 2022

Hello from the far 2022! FBS analysts have used some magic to travel to the future and brought you some hilarious predictions.

Popular

Can a recession be avoided? 

The pandemic continues hurting economic activity in China, the war in Ukraine is hitting the entire European economy, and the Fed's efforts to control inflation threaten to trigger a recession. 

Choose your payment system

Be on top of your game

Callback

Please fill in the form below so we can contact you

Select the best time for us to call you. We give calls from Monday to Friday in suggested intervals. In case we couldn't get through, we will try again at the same time the next day. For getting real-time assistance, use FBS chat.

We provide only English-speaking callbacks. If you prefer any other languages, contact the support team.

We will call you at the time interval that you chose

Change number

Your request is accepted.

We will call you at the time interval that you chose

Next callback request for this phone number will be available in 00:30:00

If you have an urgent issue please contact us via
Live chat

Internal error. Please try again later