⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Markets Adjusting Ahead of the FED Meeting Minutes

Trading activity remained subdued as market participants awaited the release of the Federal Reserve’s meeting minutes scheduled for release later today. The absence of significant economic data releases this week has contributed to relatively quiet trading sessions, especially for major currency pairs. The US dollar has exhibited stability against most major currencies, with minimal movement observed across the board. However, we saw a dip in Gold, so we decided to buy XAU since we don’t expect much more downside action, with the FOMC minutes approaching.

Will the FOMC minutes point to a June rate cut?

Notably, the USD/JPY pair has hovered near the 150.00 level, while GBP is hoovering above 1.26. EUR/USD has shown little change too, sticking around the 1.0800 mark, with not much on the European economic calendar. In contrast, the New Zealand dollar has experienced a modest uptick, with the NZD/USD pair up by 0.3% to 0.6180, extending gains from the previous session.

BrokerReviewRegulatorsMin DepositWebsite
🥇Read ReviewASIC, FSA, CBI, BVI, FSCA, FRSA, CySEC, ISA, JFSAUSD 100Visit Broker >>
🥈Read ReviewFMA, FSAUSD 50Visit Broker >>
🥉Read ReviewFSCA, CySEC, DFSA, FSA, CMAUSD 0Visit Broker >>
4Read ReviewSFSA, FSCA, CySec*USD 5Visit Broker >>
5Read ReviewFCA, CySEC, FSCA, SCBUSD 100Visit Broker >>
6Read ReviewFCA, FINMA, FSA, ASICUSD 0Visit Broker >>
7Read ReviewCySEC, FCA, FSA, FSCA, Labuan FSAUSD 100Visit Broker >>
8Read ReviewNot Regulated0.001 BTCVisit Broker >>
9Read ReviewASIC, CySEC, FSCA, CMAUSD 100Visit Broker >>
10Read ReviewCySEC,MISA, FSCAUSD 20Visit Broker >>

Will FED Meeting Minutes Send the USD Higher

Overall, risk sentiment in the foreign exchange market is mixed and volatility remains subdued, reflecting the lack of significant catalysts and relatively lower daily bond yields. Market participants are awaiting insights from the Fed minutes for potential direction in currency trading.

The Federal Reserve’s decision-making process regarding rate cuts has become more difficult now due to higher-than-expected inflation rates and a noticeable decline in retail sales in January. Balancing the need to address inflationary pressures without prematurely loosening monetary policy poses a significant challenge for the FED.

As a result of these complexities, the anticipated timing of the first rate cut by the Fed has been pushed back to June. This delay underscores the intricacies of the current economic situation and highlights the intense scrutiny the Fed faces from the market as it navigates these challenges.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
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.
Related Articles