US Dollar, EURUSD, GBPUSD, USDJPY, USDCHF Talking Points:
- Fed day is here, and the FOMC[1] is widely-expected to cut rates by 25 basis points at this afternoon’s meeting, marking the first rate cut from the bank in more than ten years.
- The bigger question is what the Fed has planned for the rest of the year. If the FOMC takes on a dovish tone, this could allow for a return of USD-weakness, similar to what was seen in the month of June. But, if the bank pitches this as a ‘one and done’ after last year’s overtightening, USD[2] strength may remain on the cards and this can create a lot of interesting volatility scenarios in the remainder of this year.
- DailyFX Forecasts are published on a variety of markets such as Gold, the US Dollar or the Euro and are available from the DailyFX Trading Guides page. If you’re looking to improve your trading approach, check out Traits of Successful Traders. And if you’re looking for an introductory primer to the Forex market, check out our New to FX Guide.[3][4][5][6][7][8]
FOMC on Deck
Fed day is here and later this afternoon, markets are heavily-expecting to get a rate cut out of the bank for the first time in more than ten years. The FOMC has hiked rates nine times in the past four years, and seven times in the past two. But as pressure began to show in risk markets in Q4 of 2018, the bank has slowly been bringing in a more-dovish outlook and the first half of this year was marked by diminishing expectations around US rates. [9]
