All Articles Tagged - Fed

US inflation eyed ahead of Biden’s stimulus proposal – Forex News Preview

Posted on January 12, 2021 at 11:44 am GMT

The main event for the dollar and equity markets this week will be the details of incoming President Biden’s stimulus proposal, which will be unveiled Thursday. Before that, the latest CPI data on Wednesday will tell us how inflationary pressures are evolving. This could prove crucial amid speculation around whether the Fed might begin tapering early next year. Overall, markets seem to be transitioning from a ‘reflation’ to a ‘growth’ narrative, and if this shift persists, the latest rebound in [..]

US retail sales in sight as Fed prepares for action – Forex News Preview

Posted on November 16, 2020 at 4:07 pm GMT

America’s latest retail sales data will hit the markets at 13:30 GMT Tuesday, and investors will look for clues on whether the Fed will pull the easing trigger again in December. With US infections spiraling out of control lately, Congress locked in a stalemate over more fiscal relief, and longer-dated US bond yields rising after the vaccine news, the Fed may frankly have no choice. As for the dollar, all this may imply some pain, but the upside in euro/dollar [..]

Fed meeting and NFP eyed as markets digest election – Forex News Preview

Posted on November 3, 2020 at 12:58 pm GMT

It is the mother of all weeks for the dollar and stock markets. In the aftermath of the US election, traders will have to digest a Fed meeting at 19:00 GMT Thursday and the latest US employment report at 13:30 GMT Friday. The election outcome will overshadow everything else, but we may still see some decent moves if the Fed telegraphs an increase in asset purchases come December. As for the jobs data, it is no longer a trend-setter for [..]

Fed minutes: Shedding light on the next move – Forex News Preview

Posted on October 6, 2020 at 11:05 am GMT

The developments around a new stimulus package and Trump’s health will likely overshadow everything else this week, but as far as scheduled releases go, the main event will be the minutes of the latest FOMC meeting at 18:00 GMT Wednesday. This was when the Fed adopted its new inflation overshoot regime and markets will be looking for hints on whether more stimulus is in the pipeline. They are unlikely to find any, which may briefly boost the dollar. From ‘all [..]

Week Ahead – Markets feel the blues ahead of US employment report

Posted on September 25, 2020 at 11:52 am GMT

A perfect storm of bad news has thrown global markets into disarray. America is running out of stimulus, fears of a constitutional crisis after the election are running rampant, Europe is wrestling with a second virus wave, and central banks have moved from ‘all in’ to ‘check’ in poker terms. Considering all this, the upcoming US employment report could be a make-or-break event for the dollar and equities. In the political arena, Brexit talks will resume in Brussels while Trump [..]

Fed meeting: Justifying the paradigm shift – Forex News Preview

Posted on September 15, 2020 at 2:06 pm GMT

The Fed will conclude its policy meeting at 18:00 GMT Wednesday, ahead of Chairman Powell’s regular press conference half an hour later. The central bank is certain to use this meeting to explain its new inflation-overshooting regime in more detail. What is less certain is whether it will also deliver new measures to lift inflation. Considering the strength of recent data, there’s little urgency to do so. Policymakers can afford to wait until after the US election, which may give [..]

FOMC minutes: Setting the stage for September – Forex News Preview

Posted on August 18, 2020 at 12:50 pm GMT

The minutes of the latest Fed meeting will hit the markets at 18:00 GMT Wednesday. Investors will look for any hints as to the Fed’s next move, which will probably be to strengthen the forward guidance. Clear signals that this might be announced in September could weigh on the dollar and boost stocks, albeit not much, as this is the consensus view. Overall, the dollar’s path will be decided mostly by what Congress does and how the virus picture evolves. [..]

Fed meeting: A more cautious message – Forex News Preview

Posted on July 27, 2020 at 11:55 am GMT

The Federal Reserve will wrap up its latest meeting at 18:00 GMT Wednesday. No change in policy is expected, so the focus will be on Chairman Powell’s press conference at 18:30 GMT. With signs that the US recovery has flattened lately, Powell could adopt a more cautious tone, opening the door for more action in September. If so, that might be enough to accelerate the dollar’s freefall, though Thursday’s GDP numbers could provide some support. Under pressure The US [..]

Fed minutes could upset markets – Forex News Preview

Posted on June 30, 2020 at 9:47 am GMT

It’s a packed week in America, where Fed Chairman Powell will testify at 16:30 GMT Tuesday, ahead of the minutes of the latest FOMC meeting at 18:00 GMT Wednesday. The crucial jobs numbers for June will follow Thursday. In a nutshell, the minutes could show a Fed that’s still hesitant towards yield curve control, much like Powell seemed back at that meeting. If so, that might lift the dollar and hurt stocks a little, but in the bigger picture, how [..]

Fed meeting: Taking a breather – Forex News Preview

Posted on April 28, 2020 at 10:40 am GMT

The Fed concludes its meeting at 18:00 GMT on Wednesday and having thrown everything including the kitchen sink to protect the US economy in the battle against the virus, no action is expected this time. As such, the market reaction may depend mainly on Chairman Powell’s remarks half an hour later. From a risk-management perspective, Powell has more incentive to soothe investors’ nerves and hint that more stimulus is possible, which could briefly hurt the dollar. Preventing a financial crisis [..]

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