Bank of America Merrill Lynch Research are discussing their expectations for the Fed's interest rate decision today at 21:00 local time.
"As is widely expected, we believe the FOMC will not take measures with regard to monetary policy and will keep interest rates unchanged." The Fed will also make a balanced statement on the economy.
"More aggressive / hawkish / tone during the statement will bring additional support to the dollar .. FOMC's decisions tend to support the greenback.In the last year, the dollar index was 8 times up and 0 times down during the statements. Interestingly, the current price action signal measured over the past 20 days is about 90% correlated with the decision in April 2018, after which DXY jumped by nearly 3% next month.
Moreover, the USD remains strong and the volatility low. This combination supports the opinion of the dollar in the short term, "commented BofAML.
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.