Will FOMC Meeting Trigger 'Madness' In The Market? - Kakiforex.com - Financial Market Media No. 1 in the World Will FOMC Meeting Trigger 'Madness' In The Market? Will FOMC Meeting Trigger 'Madness' In The Market?

March 17, 2021

Will FOMC Meeting Trigger 'Madness' In The Market?

 What is the fate of US dollar currency trading ahead of the opening of the New York session and the outcome of the FOMC policy meeting early this morning?

At the start of the European session, greenback dollar trading was seen to remain calm with moving around the same price level despite 10 -year US treasury yields showing an increase at one -year highs.

The dollar index, which measures the strength of the greenback dollar, traded steady around 91.90 against a basket of major currencies.

The movement of the US dollar reflects the vigilance of investors ahead of the Federal Reserve (Fed) decision which is expected to keep interest rates and bond -buying programs unchanged.

What makes this month’s FOMC meeting so important is that there may be big movements in currencies, bonds and equities following a statement from Fed Chairman Jerome Powell who previously repeatedly stressed that the central bank will not raise interest rates until at least 2023.

The central bank's latest projections on economic growth, inflation, employment and interest rates will also serve as indicators for investors. At this point, the market is forecasting an interest rate hike earlier than the Fed due to concerns over the recent rise in inflation.

Powell will likely try to allay market concerns with a more optimistic statement on the recovery driven by the launch of the Covid-19 vaccine and the government’s fiscal stimulus.