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Forex Today: The US Fed is expected to leave rates unchanged

Forex Today: The US Fed is expected to leave rates unchanged

Today's policy meeting at the Federal Reserve will be closely watched for statements and forecasts, but it is widely expected that the interest rate will not be changed.

➡️ Markets are awaiting today's policy meeting at the US Federal Reserve. The interest rate is strongly expected to remain at 5.50%, but economic forecasts and statement language will be watched closely by analysts trying to determine whether the end of the tightening cycle has been reached.

➡️ US 10- and 5-year Treasury yields hit new 15-year highs as belief grows that US interest rates will need to stay higher for longer. This sentiment is also pushing most stock markets lower and we see bearish price action in major US indexes such as the  NASDAQ 100  And  the S&P 500 .

➡️ The Forex market is seeing a slightly stronger US dollar. Since Tokyo opened, major currencies have barely moved. However, the US dollar remains within a valid long-term uptrend, maintaining  the USD/JPY currency pair  focused on the Long side for trend traders.

➡️ Yesterday we saw it  crude oil  decline in value after recently reaching a new 10-month high price, while markets showed new signs of rigidity driven by OPEC supply cuts.

➡️ Yesterday the Canadian CPI (inflation) data was released which showed a higher than expected monthly increase of 0.4%, when an increase of only 0.2% had been expected. However, the Canadian dollar barely reacted to the data.

➡️ UK inflation (CPI) data will be released today, which is expected to show a slight increase in the annualized rate, from 6.8% to 7.0%.

➡️ New Zealand GDP data will be released tomorrow, which is expected to show a small growth compared to the previous month.

➡️ Sugar futures  rose yesterday to reach a new multi-year high price.

 

Credit by DailyForex.com

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