Everyone is waiting to see what the Federal Reserve decides and what Fed Chairman Jerome Powell says (or doesn’t say) at the press conference, says Commerzbank FX strategist Antje Praefcke.
Calm before the Fed meeting
“There will hardly be much happening with the US Dollar (USD) until the FOMC meeting, now that calm has returned after the high excitement of last week. Also, the US labor market report for July, one of the big data heavyweights that tends to cause a lot of movement in the dollar, is due out on Friday.”
“In this regard, I will be brief and can only advise you to think again about which side of the EUR/USD would hurt you the most. We have emphasized several times since last week that the market may have gone a bit too far with its expectations on the Fed funds rate. The first doubts already seem to be emerging.”
“If market expectations are disappointed tomorrow evening (and possibly also on Friday with the labor market report), the USD could flex its muscles even further and appreciate more noticeably.”
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
