The Bank of England will publish a monetary policy summary on Thursday, June 16, at 14:00 MT time (GMT+3).
News from US central bank
Information is not investment advice
What will happen?
The Federal Reserve (FOMC), US central bank, will publish its December meeting minutes on Wednesday, January 5, at 21:00 GMT+2 (MetaTrader time).
Why is it important?
On Wednesday, December 16, the Federal Reserve announced that it would speed up the taper of its asset-purchase program. In addition, the Fed indicated it sees three rate hikes in 2022 versus the two increases previously expected. These projections reflect the Fed's shift from supporting the economy to fighting inflation. All things equal, this is positive for the US dollar in the medium term. Yet, traders will surely want to know more details about the central bank's plans and the mood of the Federal Open Market Committee (FOMC) members. The FOMC minutes will provide such information.
The minutes are a detailed record of the FOMC's most recent meeting, containing in-depth insights into the economic and financial conditions that influenced the FOMC vote on where to set interest rates. That's why the release will have an impact on the US dollar.
What happened last time?
FOMC Meeting Minutes released on November 24 showed that more Fed officials were open to speeding up bond-buying taper and rates liftoff. That made the USD rise versus other currencies. Market players were ready for such an outcome. So traders started actively buying the USD on November 22. As a result, USD/JPY rose from 114.00 to 115.40 during three days.
How to trade on FOMC Minutes?
- The USD will strengthen if the FOMC is even more hawkish than thought.
- If the FOMC is cautious about the US economy, the USD will weaken.
Instruments to trade: all the major pairs and XAU/USD
The Federal Reserve will make a statement regarding the future monetary policy on Wednesday, June 15, at 21:00 MT time (GMT+3).
The US PPI will come out on Thursday, May 12, at 15:30 MT time.
The governor of the Bank of England, Andrew Bailey, will hold a speech on June 29 at 15:30 MT time (GMT+3).
The US Markit will publish Flash Manufacturing and Flash Services PMIs (purchasing managers' indices) on June 23 at 16:45 GMT+3.
The Fed Chair Jerome Powell will testify on the Semi-Annual Monetary Policy Report before the House Financial Services Committee on June 22-23 at 17:00 GMT+3.