Don’t waste your time – keep track of how NFP affects the US dollar!
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Personal areaThe Federal Reserve will release its statement and announce its interest rate decision at 21:00 MT time. Then, at 21:30 MT time, the central bank will hold a press conference.
Each meeting of the regulator draws the attention of the trading community. The central bank has to comment on the recent data releases, give its estimate of the US economy and outline its plans for stimulus and interest rates. The better the US economic figures, the higher the pressure on the Fed to start normalizing policy. In the past weeks, America has released some decent numbers, so traders will sit nervously in front of their monitors waiting for Jerome Powell and his colleagues to give the market some signal.
The logic is simple. If the Federal Reserve admits that the American economy is doing fine, the USD will strengthen. If it hints that the time to raise interest rates may come earlier than expected, the USD will strengthen. If the Fed becomes concerned with rising inflation, the USD will strengthen. If the actions of the US central bank are the opposite, the USD will weaken.
Let’s summarize these considerations:
Instruments to trade: EUR/USD, USD/JPY, GBP/USD, XAU/USD.
