All Eyes on the FED – Tomorrow, 21 March 2018
This article is originally referred from IronFX News.
Tomorrow, investors are awaiting for FOMC’s Interest Rate Decision, and it is expected to rise.
Here are 7 important points for investors!
- On Wednesday, at 18:00 (GMT), the Fed will announce their decision regarding the Interest rate.
- Currently Feds Funds Futures imply by 100% that the Fed will raise interest rates by 25 basis points to +1.75%.
- However the market widely expects it to happen already, so the US Dollar’s direction will depend on other factors.
- The dot plot could reveal the banks intentions for a 3 or a 4 rate hike path. Should the median of the FOMC’s votes show a possibility of the number of rate hikes to be 4 in 2018 we could see the US Dollar strengthening.
- Even if the dot plot remains unchanged, a possible upgrade of the economic outlook could also strengthen the greenback.
- Should the accompanying statement have a more hawkish tone the USDollar again could strengthen.
- The following press conference will be Powell’s first and the new Fed’s Chairman has proven that he is not shy of his opinion even should his opinion be a market mover, so we expect volatility to continue throughout the press conference as well.
The interest rate decision is one of the most influential economic events regarding a currency’s value in relation to other currencies.
Shortly before the decision and shortly after, there is usually higher volatility, providing the market with opportunities for further gains.
Original Source: IronFX News