Investors' attention is directed to the Fed Interest Rate Decision
Investors' attention is directed to the Fed Interest Rate Decision
On Wednesday, January 29, at 21:00 (GMT+2, terminal time), the US Federal Reserve will hold a monetary policy meeting. At 21:30, the FOMC conference on the meeting results will take place. With a probability of almost 100%, the US Fed is expected to keep the rate at the current level of 4.5% at the current meeting. Market participants expect the FOMC to hold the rate at the January and March meetings, with the next rate cut coming in May. The statement may note that the labor market appears to have stabilized, but it is unlikely to provide clear guidance on the March meeting or the timing of further cuts. Therefore, the investors will focus on the speech of US Federal Reserve Chairman Jerome Powell following the meeting.
However, most likely, Chairman Powell will emphasize that the FOMC does not commit to future meetings and that the central bank is data-dependent. The FOMC meeting will conclude one day before the release of the first official estimate of 4Q24 GDP and 2 days before the release of the PCE inflation report. The GDP data is likely to show a 2.7% increase, while the core PCE is expected to come in at 2.8%, slightly higher than last month. The former figure is more resilient than the latter. This allows the Fed to continue to reduce the restrictive nature of the current monetary policy. This means the US dollar will gradually lose factors to strengthen unless Trump starts scaring everyone with tariffs again, which may support the dollar for a while.
Main focus on:
EUR/USD
USD/CAD
USD/JPY
AUD/USD
GBP/USD
NZD/USD
USD/CHF
USD/MXN
US30
US100
US500
XAU/USD
XAG/USD
Don't let these opportunities pass you by. Start trading today and turn your funds into new possibilities.
