Trading volatility: USD around FOMC minutes on 21 February
With the Federal Reserve looking increasingly hawkish, bets are being pushed out on when the US central bank will cut rates.
There could well be some more volatility around the dollar on Wednesday with the release of the Federal Open Market Committee’s minutes of the last rate meeting, from 31 January. IGTV’s Jeremy Naylor looks at the dollar basket (DXY) as a potential long trade.
(AI Video Summary)
FOMC's meeting minutes due next Wednesday
Next week, on 21 February, the minutes of the FOMC's important meeting that took place on 31 January will be shared. They will likely discuss how the Federal Reserve plans to keep interest rates higher for a longer period of time. This decision could cause some excitement and movement in the trading market. The main focus of this video will be on the US dollar, particularly the dollar basket.
During the previous meeting, the Federal Reserve made it clear that they will not lower interest rates until they see a decrease in inflation. However, recent data on consumer prices (CPI data) has shown that inflation is not going down as quickly as expected. This suggests that there may be more room for improvement and potential benefits in the market.
Status on the dollar basket
Currently, the dollar basket is trading at 10,403. This means that one unit of the dollar basket is valued at 10,403 compared to foreign currencies. It's important to note that there are still three more days of trading before the minutes of the FOMC's meeting will be released. During these three days, there is a chance that there will be increased excitement and activity in the trading market.
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