FOMC meeting: main event of the week

FOMC meeting: main event of the week

All the investors’ main focus turns to the Wednesday’s Fed June meeting, amid the absence of major important economic data releases for this week.

During the last week, strong US employment data has pushed the dollar high, as nonfarm payrolls added 288.000 new jobs during the last month, while the unemployment rate fell to 6.1 %, which was the lowest level since nearly 6 years. Accordingly the US stocks advanced significantly including the Dow jones , while the greenback extended gains amid growing speculations that the FOMC may decide to hike the interest rates ever before market expectations.

On Monday, the market witnessed a quiet trading as the investors returned from July 4th Independence holiday. And the Fed meeting remains in focus.

Furthermore, today the US Dollar remained steady against its major currencies ahead of the outcomes of the FOMC monetary policy meeting, Janet Yellen speech and the Fed decisions concerning the monthly bonds buying program as well as the interest rates.

On the other hand, Gold prices were under pressure amid fears of possible hike of the interest rates supported by the recent improvement of the US economy.

As a result, the investors keep a cautious trading ahead of the outcomes of the Fed meeting, so can Yellen decide to hike the interest rates soon or to keep the rates low as did Mario Draghi in his last meeting?

MBCFX Forex & CFDs Brokerage Firm