Jump to content

Fed minutes may provide another reason to buy the USD


Recommended Posts

It's the release of the minutes of the Fed's last rate meeting at which it left the Federal Funds Rate on hold. The pause in rates followed a run of consecutive rate hikes at every meeting since March 2022.

 

 Jeremy Naylor | Analyst, London | Publication date: Wednesday 05 July 2023 

The updated economic projections suggest rates may reach 5.6% by year-end, thus suggesting two more increases. Fed Chair Jerome Powell recently reinforced the view that the board is leaning towards two rate hikes and hasn't ruled out consecutive-meeting rate increases. The latest economic projections from the Fed indicate that the fed funds rate is expected to gradually fall to 4.6% in 2024.

(Video Transcript)

Fed minutes

It's the release of Federal funds minutes of the last meeting show that we saw the Federal Reserve (Fed) keep interest rates on hold following the Independence Day holiday. As it does, the release today will force people back to their desks, I guess bringing them back to reality after what's a long weekend for many been. The pause in rates followed a run of consecutive rate hikes at every meeting since March 2022.

The updated economic projections suggest rates may reach 5.6% by year's end, thus suggesting more rate increases. The Fed chair, Jerome Powell, seen here recently reinforcing the view that the board is leaning towards two rate hikes and hasn't ruled out consecutive meeting rate increases, The latest economic projections from the Fed indicate that the Fed funds rate is expected to gradually fall to 4.6% in 2024.

USD

Let's show you what's happening with the USD. This is the dollar basket up for a third day in a row today. Despite the fact we saw the US markets out yesterday, money was going into the dollar, and I think the minutes may reveal the board's intention is to keep interest rates higher for an extended period of time, with a rate hike possibly delayed until the end of the first quarter or second quarter of 2024 if inflation falls towards that desired trajectory.

EUR

Let's take a look at the EUR very quickly, all the way down, not quite as low as we've been in the last week or so, but at 1.77 looking weak. So, if you're selling euros at the expense of the USD, your stock goes up above the 110 level, currently trading at 1 to 876.

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Avail, founded by former Polygon co-founders Anurag Arjun and Mihailo Bjelic, is a groundbreaking modular blockchain project that aims to overcome the limitations of traditional blockchain networks. Launched in late 2020, Avail offers a versatile platform for trust-minimized applications and sovereign roll-ups, providing a secure and scalable data availability layer with customizable consensus. At the heart of Avail's innovation is its Unification Layer, which comprises Avail DA, Nexus, and Fusion. This tripartite approach addresses key challenges in blockchain scalability, interoperability, and security, positioning Avail as a key player in the evolving modular blockchain landscape. Avail's Data Availability (DA) solution stands out with its low-cost, expandable blobspace, enabling numerous rollups and supporting the development of application-specific and general-purpose decentralized applications (dApps). By offering opt-in data availability services for rollup networks, Avail provides a more cost-effective alternative to Ethereum for data storage, making it an attractive choice for developers and projects. The AVAIL token serves as the backbone of Avail's ecosystem, offering users the ability to stake and earn rewards, as well as participate in the project's governance. As Avail continues to evolve, the AVAIL token will play a crucial role in shaping the future of this modular blockchain. For Crypto enthusiast exploring the potential of the AVAIL token and Avail's innovative solutions can be a rewarding opportunity. Bitget's pre-market trading feature allows users to get early access to emerging projects like Avail, giving them the chance to be at the forefront of the modular blockchain revolution. By taking advantage of the exchange pre-market trading, users can stay ahead of the curve and potentially benefit from the growth of Avail and the AVAIL token.
    • Eager to dive into cryptocurrency trading? NakitCoins presents its advanced multi-crypto ATM, streamlining the process of buying and selling bitcoins with unparalleled efficiency. Focused on both security and precision, our platform provides a low-risk transaction environment through our robust monitoring systems.
    • Hi AshishIG, thanks for the quick response. Indeed, I don't see the CTC for 2024, I only see the 'Cost and Charges' document for download.
×
×
  • Create New...
us