empty
 
 

Forex Analysis & Reviews: FOMC minutes could change market sentiment (expect a decrease in GBP/USD and an increase in USD/JPY)
time 17.08.2022 10:44 AM
time Relevance up to, 19.08.2022 09:06 AM

Trading on world markets ended on Tuesday in positive territory. Stock indices rose, while dollar fell ahead of the release of FOMC minutes. One of the reasons is the clear discrepancy between what the Fed members are saying about the prospects for raising interest rates, and Jerome Powell's earlier hints about the pace of growth in rates. Regarding market expectations, 69% believe that the discount rate will be raised by only 0.25% in September. This opinion came from the assumption that the Fed will no longer raise rates aggressively if inflation eases. However, that will only happen if energy prices drop and savings increases. So far, there are no reasons for the two to happen, and oil quotes are expected to rise above $100 a barrel by the end of the year. Nevertheless, Fed members continue to point the need for aggressive rate hikes, although they do not specify exactly how much it should be. Some say 0.50%, while others say 0.75%. What is certain is that after a pause in August, rates will rise by 0.25% in September.

As mentioned earlier, ahead is the release of Fed protocol, which will hint at the pace of interest rate hikes. If the document does not show clarity on this issue, risk appetite will jump up, while demand for dollar will weaken. If it does, then expect several more-than-0.25% increases in rates.

Forecasts for today:

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

GBP/USD

The pair is trading below the resistance level of 1.2125. If it does not overcome it, then the quote will decline to 1.2010.

USD/JPY

The pair is trading below 134.70. Positive news for the dollar after the release of Fed minutes may support the pair. Most likely, a rise above the level will stimulate a price increase to 136.00.

Pati Gani,
Chuyên gia phân tích của InstaForex
© 2007-2023
GBPUSD
Great Britain Pound vs US Dollar
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Start trade
Start trade

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.

  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    THAM GIA CUỘC THI
  • Tiền gửi lần truy cập
    Ký quỹ tài khoản của bạn với $3000 và nhận được $10000 nhiều hơn!
    Trong Tháng 01 chúng tôi xổ $10000 trong chiến dịch Chancy Deposit!
    Có được một cơ hội giành chiến thắng bằng việc ký quỹ $3000 vào một tài khoản giao dịch. Đáp ứng được điều kiện này, bạn trở thành một người tham gia chiến dịch.
    THAM GIA CUỘC THI
  • Giao dịch khôn ngoan, thành công
    Nạp tiền vào tài khoản của bạn với ít nhất $ 500, đăng ký cuộc thi và có cơ hội giành được các thiết bị di động.
    THAM GIA CUỘC THI
  • 100% tiền thưởng
    Cơ hội duy nhất của bạn để nhận 100% tiền thưởng khi gửi tiền
    NHẬN THƯỞNG
  • 55% Tiền thưởng
    Đăng ký tiền thưởng 55% cho mỗi lần gửi tiền của bạn
    NHẬN THƯỞNG
  • 30% tiền thưởng
    Nhận 30% tiền thưởng mỗi khi bạn nạp tiền vào tài khoản của mình
    NHẬN THƯỞNG

Recommended Stories

EUR/USD. Preview of the week. Hot days of February

In the coming days, the Fed and the ECB will hold their first meetings of 2023 and the results will cause increased volatility in all dollar pairs. The EUR/USD will

Irina Manzenko 16:03 2023-01-29 UTC+2

EUR/USD. Results of the week. The scales remained in balance

Last week, key macro data could not tip the scales in either direction. Initially, bulls took the initiative, which renewed the 9-month high. Then bears took the initiative and pulled

Irina Manzenko 15:27 2023-01-29 UTC+2

GBP/USD. Overview for January 29. The week of judgment for the British pound.

On Friday, the GBP/USD currency pair remained very close to its regional peak of 1.2451. The price made two unsuccessful attempts to break through this barrier. Following the initial bounce

Paolo Greco 13:26 2023-01-29 UTC+2

EUR/USD. Overview for January 29. The upcoming week is crucial for both the dollar and the euro.

The EUR/USD currency pair finished the week exactly as it had begun. Another ineffective attempt to correct, a further drop in the moving average, which has been closely related

Paolo Greco 13:13 2023-01-29 UTC+2

Britain is going through a difficult period.

What conclusions can we draw now that another week on the foreign currency market has come to an end? Unfortunately, there aren't many conclusions because this week, particularly

Chin Zhao 12:53 2023-01-29 UTC+2

GBP/USD. Analysis of the trading week of January 23-27. COT report. The British pound is again aiming for growth.

Over the previous week, the GBP/USD currency pair has traded more sideways than up or down, but overall it has maintained an upward trend. As a result, there has been

Paolo Greco 11:49 2023-01-29 UTC+2

EUR/USD. Analysis of the trading week of January 23–27. COT report. The euro remains at peak levels ahead of the ECB and Fed meetings.

Following a correction to the crucial level, the EUR/USD currency pair resumed its ascent over the current week. Since the present technical disposition is most readily apparent on the 24-hour

Paolo Greco 11:37 2023-01-29 UTC+2

ECB rates to peak longer than Fed rates, pushing EURUSD above 1.2

Forex is a place where questions never end. In the first phase of monetary tightening, investors worry about how quickly rates will rise. Then, how high they will grow. Finally

Marek Petkovich 15:10 2023-01-27 UTC+2

Does the US debt ceiling issue pose a threat to the world economy?

Additionally, US President Joe Biden blasted the Republicans, alleging that they want to use the debt ceiling as leverage in economic negotiations, as the markets were getting ready

Jakub Novak 12:11 2023-01-27 UTC+2

The euro has a good chance

According to a survey of analysts, the European Central Bank's decision to raise interest rates by 50 basis points is already final, so the euro has a high probability

Jakub Novak 12:01 2023-01-27 UTC+2
Không thể nói chuyện ngay bây giờ?
Đặt câu hỏi của bạn trong phần trò chuyện.