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How To Trade USD On The Fed's Meeting

Published 04/27/2016, 04:19 AM
Updated 10/19/2022, 07:05 AM
DXY
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A very important event for the US dollar is due on Wednesday: the results of the Federal Reserve’s meeting will be released at 18:00 GMT. The change in the central bank’s interest rate is very unlikely, so the main thing to watch will be the Fed’s statement. There are some more hawkish members within the Fed, so the central bank may prepare ground for a potential rate hike this summer. Yet, the central bank will probably try to sound balanced. The main thing to watch is whether phrases about “an unstable situation in global financial markets” and “risks for the global economy as a whole and the US economy in particular” remain in the text of the statement. If they do, the US currency will remain under negative pressure. If they don’t, the greenback will gain versus other majors.

Technical analysis for the main currency pairs is in the video:

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