Fed rate: Current 1.00 – 1.25%. The forecast is unchanged.
The program “Anti-QE” or the reduction of the Fed’s balance sheet sale of bonds. The beginning of the operation is not earlier than September (option – December).
The rate increase plan is one increase for the remainder of December 2017 or at the end of the year.
The forecast of the state of the economy is moderate growth. The estimated inflation is below the FRS threshold of 2% per annum.
Market reaction: In case of a soft statement by the Fed, the trend against the dollar will continue. The EUR/USD rate will break to 1.0712 and will move towards 1.1800. The franc, pound and gold will grow against the dollar.
The yen will try to maintain the growth of the dollar. That is, it is better to buy a yen for a dollar.
Alternative option: Unexpectedly, the tough statement by the Fed will cause a strong correction in the foreign exchange market and strengthen the dollar.
The material has been provided by InstaForex Company – www.instaforex.com Source: Instaforex.com
FRS at 19.00 BST
Burning forecast.
Fed rate: Current 1.00 – 1.25%. The forecast is unchanged.
The program “Anti-QE” or the reduction of the Fed’s balance sheet sale of bonds. The beginning of the operation is not earlier than September (option – December).
The rate increase plan is one increase for the remainder of December 2017 or at the end of the year.
The forecast of the state of the economy is moderate growth. The estimated inflation is below the FRS threshold of 2% per annum.
Market reaction: In case of a soft statement by the Fed, the trend against the dollar will continue. The EUR/USD rate will break to 1.0712 and will move towards 1.1800. The franc, pound and gold will grow against the dollar.
The yen will try to maintain the growth of the dollar. That is, it is better to buy a yen for a dollar.
Alternative option: Unexpectedly, the tough statement by the Fed will cause a strong correction in the foreign exchange market and strengthen the dollar.
The material has been provided by InstaForex Company – www.instaforex.com
Source: Instaforex.com
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