In a few hours all analysts and economists will be focusing on one thing and one thing only, the FOMC Meeting Minutes. Traders know how important this is when setting their long-term trades. Make sure to set your alarm to 6PM GMT so you can get a headstart.
What is it?
What are the FOMC Meeting Minutes? This high-impact release is essentially a detailed record of the FOMC's most recent meeting, providing in-depth insights into the economic and financial conditions that influenced their vote on where to set interest rates.
Professional Insight
“Andrew Sheets, the chief cross-asset strategist at Morgan Stanley, told CNBC’s “Squawk Box Europe” on Wednesday that the investment bank expected the Fed to announce a tapering of its asset purchases in September. Sheets said Morgan Stanley expected the Fed to tighten its monetary policy “well ahead” of the European Central Bank and the Bank of Japan.”
What happens if...
A hawkish release will be very good for the US dollar. Analysts, traders, economists, and investors will be happy to see this. With high hopes, we can see the US dollar appreciate versus other currencies.
What happens if...
A dovish release could be seen as a sign of weakness for the US economy. Traders and investors could move their attention elsewhere to find opportunities in the markets. This could lead to a small blip and possibly downward pressure on the US dollar.
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