Fed Chair Jerome Powell’s comments on the Jackson Hole Symposium resulted in the worst weekly candle in US500 since June.
Again? Will the Fed Increase the Rate?
Information is not investment advice
What will happen?
The Federal Open Market Committee (FOMC) will update the Federal Funds Rate and make a statement about future monetary policy on July 27 at 21:00 MT. This is how the US manages its economy.
Possible USD moves
The Fed members have hinted that due to the massive inflation, they will raise the rate by 75 basis points again. However, there’re still plenty of rumors that the Fed’s steps could be more hawkish with a 100-point rate increase.
The previous FOMC meeting’s result didn’t bring positive news, as the probability of a recession increased. Traders weren’t that happy with the result. For example, the USDCAD lost 1210 points in the first hour. If you caught the moment and traded one lot, your potential profit could have been $1210.
How to trade on USD FOMC Federal Fund Rate release?
- If the announcement is better than expected, the US dollar will rise.
- Otherwise, the US dollar will fall.
- Be ready for volatility during the release. Much will depend on how the market perceives the potential consequences of the change in rate.
Check the Economic Calendar.
Instruments to trade: EURUSD, USDCAD, USDCHF, USDJPY.
The United States will publish the Inflation Rate and Core Inflation Rate, also known as US CPI and Core CPI, on August 10 at 15:30 GMT+3.
The United States Bureau of Labor Statistics will release monthly average hourly earnings, non-farm employment change (NFP), and unemployment rate on August 5, 15:30 GMT+3.
Main news that will drive the market in the upcoming week include CB Consumer Confidence Index, Canadian GDP, and US Core PCE Price Index
The Federal Reserve (Fed) will announce its Interest Rate Decision and make a statement about the future monetary policy on Wednesday, September 21, GMT+3. After the higher-than-expected inflation numbers published on September 13, there’s almost no doubt the Federal Reserve will come up with another 75-basis-point rate hike. However, surprised by the CPI numbers, several Fed members announced the possibility of a 100-basis-point rate hike on Wednesday.
Every week we expect many interesting events that can shake the market.