Morning Preview: FOMC Draws Near - Forex News by FX Leaders

Morning Preview: FOMC Draws Near

Posted Tuesday, October 31, 2017 by
Rowan Crosby • 2 min read

Morning All,

The month has wrapped and it was an eventful end to proceedings. Stocks closed out a super strong month and the US dollar found some footing, after a poor start to the week. As the new month begins, expect a bang as we have the FOMC interest rate decision today, which is going to shake things up.

As a result, we can expect the majors to be a little more subdued in Asian trade. The AUD and NZD weakened overnight and there might not be much follow through, given the stakes on offer later.

If we get the result that we are expecting at the Fed announcement, then interest rates won’t be changing. All the experts are predicting December to be the month that the US raises interest rates, so we are on the lookout for any hints to back up that thinking. Should some come out in the accompanying statement, then you can be sure that the USD will be on the rise.

Some good options for trades in the event of a proposed December rise might be the AUD or NZD, given the fact that they have been two of the weaker currencies in recent times. Momentum is strong to the downside, and the price action has been relatively predictable in terms of identifying pullbacks.

As we can see the USD strengthened, however, it hasn’t run up to the highs. If we get word of a potential hike then expect 95.00 to get taken out comfortably.



US Dollar Index (DXY) – 240 min Chart


Key Economic Events


NZD – Employment

CHY – Manufacturing PMI

GBP – Manufacturing PMI

USD – FOMC Statement



EUR – German Unemployment

GBP – BOE Interest Rate Decision



AUD – Retail Sales

USD – Employment

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Japanese stock markets have started to recover, following the closing of the day. Bullish recovery was backed by the Paper & Pulp, Railway..
1 year ago
0 0 vote
Article Rating
Notify of
Inline Feedbacks
View all comments