Morning Preview: FOMC the Key for Traders this Week
Rowan Crosby • 2 min read
Welcome to another big week in forex markets Lads!
It was another wild ride in forex markets last week, as we were again faced with hurricanes in the US and more drama from North Korea. Safe havens continued the whipsaw that they are now getting so accustomed to, while it was the GBP which soared to new heights.
Over the weekend the tension surrounding North Korea and what exactly Kim Jong-un might potentially do seemed to fade as there was no sign of another missile test. The last one which happened on Friday seemed to get largely brushed aside, as simply more of the same, as the safe havens reacted early but retraced.
This week is highlighted by another meeting of central banks and it’s the biggest show in town with Janet Yellen and the FOMC releasing their interest rate decision. While there is likely to be no change in official rates, the USD has the potential to be a little quiet in early trade, as markets ponder what the Fed has in store.
Top Economic Events this Week
EUR – Inflation
GBP – Mark Carney Speaking
AUD – RBA Minutes
EUR – German ZEW Index
JPY – Trade Balance
EUR – German PPI
GBP – Retail Sales
USD – Existing Home Sales
USD – FOMC Interest Rate Decision
USD – Jobless Claims
EUR – Consumer Confidence
EUR – PMIs
CAD – CPI
USD – PMI
Top Trade to Watch
DXY – Daily Chart
All the focus is, without doubt, going to fall back onto Janet Yellen and what she intends to do with interest rates going forward. A stronger than expected CPI out of the US has the potential to sway opinion, however, it’s more than likely that we will see no change in official rates. Watch out for the press conference, where we will get more insight into the opinion of the Fed Chairman and what her timeline of events may well be.
The trend for the USD has been down since the start of 2017. Any potential hike in rates might give us the impotence for a rally, but unless there is some clear suggestion from Yellen, the trend to the downside might well continue.
It should be another great week for trading forex markets, so stay tuned for all our analysis as we have got you covered. Good trading guys!