empty
 
 
31.01.2023 12:18 PM
Markets await positive outcome from the Fed's monetary policy meeting

Markets came under strong pressure on Monday due to the closing of many long positions ahead of the Fed monetary policy meeting. This is to be expected as investors usually hedge before central banks announce their decision on interest rates.

Earlier, markets had a strong opinion that slowing inflation and the still-strong US economy will influence the Fed to raise the key interest rate by 0.25%. They also expected the central bank to take a pause in the rate hikes, while some even believe that is where the cycle will end. Of course, in spite of such widespread conviction, there is still the possibility that the opposite will happen.

Nevertheless, it is likely that the declines that began on Monday will end without exception, and it is even possible that risk appette will surge again. This will put pressure on the dollar, slowing down its local increase. The signal will be the rebound in stock indices, not only in the US but also in Europe.

Forecasts for today:

This image is no longer relevant
This image is no longer relevant

USD/CAD

The pair bounced up, thanks to the decrease in risk appetite and crude oil prices ahead of the Fed's monetary policy meeting. If market sentiment changes today and traders fail to hold the quote above 1.3445, the pair will fall to 1.3300.

EUR/USD

The pair is trading above 1.0835. If the negative sentiment eases today, the pair may advance to 1.0835-1.0930.

Pati Gani,
Analytical expert of InstaForex
© 2007-2024
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST
  • Chancy Deposit
    Deposit your account with $3,000 and get $8000 more!
    In March we raffle $8000 within the Chancy Deposit campaign!
    Get a chance to win by depositing $3,000 to a trading account. Having fulfilled this condition, you become a campaign participant.
    JOIN CONTEST
  • Trade Wise, Win Device
    Top up your account with at least $500, sign up for the contest, and get a chance to win mobile devices.
    JOIN CONTEST
  • 100% Bonus
    Your unique opportunity to get a 100% bonus on your deposit
    GET BONUS
  • 55% Bonus
    Apply for a 55% bonus on your every deposit
    GET BONUS
  • 30% Bonus
    Receive a 30% bonus every time you top up your account
    GET BONUS

Recommended Stories

Can't speak right now?
Ask your question in the chat.
Widget callback