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Keep An Eye on the FOMC Minutes

In a few minutes the FED will release the minutes of their December meeting when they hiked the interest rates by 25 basis points. I don't expect a trend reversal happening because of them, but they're worth watching out for. 

The dot plot remains the most immediate thing the market will be focused on. The FED hiked the interest rates unanimously, but the forex market will be more interested on what the projections are for the monetary policy path for 2017.

Will we see two or more rate hikes this year? Or at least, are the FED members confident enough to promise more than two hikes this year? It's another thing if they can stick to their promises. 

So, the first thing with a potential impact on the forex market will be the "Dot Plot". 

Another thing to whatch for will be the reaction to the expected fiscal policy from the new White House administration. Trump has been making lots of promises since he started running for president, but no one listened to his promises because the general thought among the elite was that he wouldn't win. 

Donald Trump will be the new US president in a while and I bet the guys at the FED have been looking at his campaign videos since November 8th. If the FED remains on a wait and see mode then the market might take it as dovish, since it's been betting on tighter monetary policy due to a possible fiscal stimulus. That needs a thorough look of the minutes though, so we'll update you guys with it tomorrow. 

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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