Jump to content

Traders eye USD volatility ahead of FOMC minutes


Recommended Posts

Forex traders will be keeping an eye on the USD today for any volatility with the release of the FOMC minutes tonight.

Written by: Angela Barnes | Financial presenter/producer, London
 
Publication date: 

The Federal Reserve made it clear that they will not lower interest rates until they see a decrease in inflation - and recent CPI data has shown that inflation is not going down as quickly as expected. We could therefore expect some upside on the dollar, as IGTV’s Angela Barnes explains.

 

The U.S. dollar

The value of the USD might change a lot soon because of some important reports coming out. Right now, the value of the dollar is not really going up or down, but that could change. The people who control the money in the U.S. have said that they will only lower interest rates if inflation goes down. But it seems like inflation is not going down as quickly as they thought, so the dollar could actually become more valuable.

The stock markets

The people who trade in the stock market are adjusting their predictions about when and if the government will lower interest rates. This has caused the value of the dollar to go up since the beginning of the year. There's a tool that shows the chances of the government lowering interest rates, and right now, the chances are pretty low for the next meeting in March. But the chances go up for the meeting in May, and by the meeting in June, it's almost certain that they will lower rates. These increasing chances of lowering rates could affect how much the dollar is worth.

So, to sum it up, the release of some important reports could make the value of the dollar change a lot. Right now, the value of the dollar is steady, but the government's stance on lowering rates and the slower-than-expected decrease in inflation might make the dollar more valuable. The predictions of the traders have also influenced the value of the dollar in recent months. It's unlikely that they will lower rates in the next meeting, but the chances go up for future meetings and this could affect the worth of the dollar.

 

 

 

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

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

    • Ever feel like you're stuck in crypto traffic? Slow transactions and outrageous fees are the bane of using blockchains like Ethereum at their core (Layer 1). These networks can only handle a limited number of transactions per second, causing major congestion during peak hours. The result? Frustratingly slow processing and expensive fees for users.   But wait, there's hope! Layer 3 rollups are here to revolutionize the game. Imagine them as express lanes built on top of existing bypass roads (Layer 2 solutions). Layer 2 already helps by alleviating some of the traffic on the main highway (Layer 1). Layer 3 rollups take it a step further, adding dedicated express lanes to these bypass roads for super-fast processing. This innovative approach tackles Layer 1's congestion by distributing the workload across multiple layers, ultimately leading to faster, cheaper, and more scalable blockchain applications.   While specific layer 3 implementations are still under development, some projects are paving the way. Immutable X (IMX token) built on StarkNet (a Layer 2 scaling solution) and dYdX (DYDX token), a decentralized exchange on StarkNet, are both exploring layer 3 rollups to achieve even smoother transactions. Keep an eye out for zkLink Nova, a major player in the scalability game. This cutting-edge technology leverages the strengths of existing solutions to deliver groundbreaking performance. Backed by leading crypto institutions with over $23 million invested in the zkLink ecosystem, zkLink Nova is generating serious buzz ahead of its ZKL token listing on Bitget. Get ready for a smoother ride on the crypto highway!
    • Well, I didn't mine $PIXFI but I was able to make good profit from Bitget Poolx. 
    • This partnership further shows Bitget continuous passion for massive crypto adoption 
×
×
  • Create New...
us