#EURUSD @ 1.10388 Risks in are pointing to the downside – Commerzbank
…
This is a premium post.
[s2If !current_user_can(access_s2member_level4)]Please register for FREE REGISTER to read full post below containing analysis. In case of any error or you think you are not able to read the full post below, please email us at support#nehcap.com [lwa][/s2If] [s2If current_user_can(access_s2member_level1)]
Today’s main event is the FOMC meeting. Economists at Commerzbank analyze how the US Dollar and the EUR/USD pair could react to the Fed policy announcement.
“The market expects the Fed to hike rates by 25 bps resulting in a key rate corridor of 5.0%-5.25%. This step has been fully priced in by the market and will therefore not cause much of a reaction in the Dollar.”
“Following today’s step, the market sees no chance of a further rate hike. A moderately hawkish statement that refers to continued high inflation levels and does not exclude further tightening would make rate cuts this year seem less likely, meaning the market would have to adjust its expectations. This is likely to support the Dollar against the Euro, as it would tarnish the market’s conviction that the ECB is acting in a much more decisive manner than the Fed.”
“As we consider it to be unlikely that the Fed will signal a rate pause at this stage, the risks in EUR/USD as a result of today’s Fed meeting are therefore rather pointing to the downside.”
[/s2If]
Nehcap Expert Advisor
The NEHCAP MT4 EA is high quality professional trading system geared to generate returns without using GRID or martingales. Each trade has strict risk per trade parameter. The pairs under management include EURUSD, GBPUSD, AUDCAD, AUDNZD,GBPAUD, EURAUD, EURCAD, CHFJPY and many more.
The system is trading live: LIVE ACCOUNT TRACKING
You can run it free. Apply for a free trial and track our account. Buy the system or use profit share mechanism to generate returns on your MT4.
Join Our Telegram Group
