The overall market sentiment is mixed as new virus cases continue rising throughout the world, but most economic indicators came out better than analysts expected. Let’s look at the main market movements.
The USD may act on further actions by the Fed
Information is not investment advice
The Federal Open Market Committee will publish the monetary policy decision and announce the interest rate on June 10, at 21:00 MT time.
Instruments to trade: EUR/USD, USD/JPY, USD/CHF
The FOMC stands for the Federal Open Market Committee. This is the department within the Federal Reserve of the United States, which is responsible for the monetary policy decisions. It releases the statement 8 times per year. The document contains the newest decision on the interest rate and policy measures. It also explains what economic conditions affected the decision. Based on the analysis of economic outlook, traders may get clues on future rate cuts.
We don’t expect the Federal Reserve to make any changes this time. However, the Fed Chair Jerome Powell stated several times in May that the regulator would implement more easing measures if needed. That is why we need to follow further news on the stimulus.
- If the Fed is optimistic, the USD will rise;
- If the Fed is pessimistic, the USD will fall.
The market sentiment switched to risk-off after the Fed’s Powell statement. The USD edged higher, while risker assets started falling after reaching quite high levels. Let’s have a closer look.
The overall market sentiment is mixed as investors await the Federal Reserve’s statement today at the evening.
The market sentiment is indeed risk-on today. Stocks, riskier currencies and gold are rising amid the waning US dollar.
The US NFP will be published on August 7 at 15:30 MT time.
The RBA will make a rate statement on August 4 at 7:30 MT time.