Ipek Ozkardeskaya
Swissquote Bank Ltd
Today, the Federal Reserve (Fed) will likely end the most aggressive monetary policy tightening cycle of its modern history. It is expected to start cutting its interest rates, update its economic projections and reveal its latest dot plot.
While a rate cut is fully priced in, investors can’t agree on whether the Fed should cut by 25 or 50bp? There is roughly 50-50 chance asses to one scenario or the other.
Today’s episode is a pure Fed overdose. So tune in to find out more!
This report has been prepared by Swissquote Bank Ltd and is solely been published for informational purposes and is not to be construed as a solicitation or an offer to buy or sell any currency or any other financial instrument. Views expressed in this report may be subject to change without prior notice and may differ or be contrary to opinions expressed by Swissquote Bank Ltd personnel at any given time. Swissquote Bank Ltd is under no obligation to update or keep current the information herein, the report should not be regarded by recipients as a substitute for the exercise of their own judgment.
Recommended Content
Editors’ Picks
EUR/USD holds gains above 1.1100, Fed rate decision in focus
EUR/USD is holding gains above 1.1100 in the European session on Wednesday. A broadly weak US Dollar, amid increased bets of an outsized Fed rate cut and a cautiously optimistic market mood, underpins the pair. All eyes remain on the Fed policy verdict.
GBP/USD extends rebound above 1.3200 after UK inflation data
The GBP/USD rebound gains traction above 1.3200 in European trading on Wednesday. The data from the UK showed that the annual core CPI rose 3.6% in August, up from a 3.3% increase in July, and supported the GBP. Focus shifts to Fed policy decisions.
Gold pulls back ahead of Fed ruling
Gold hit a record high of $2,589 at the start of the week after market bets that the Fed would make a double-dose 0.50% cut to interest rates at its meeting later today rose sharply. A bigger rate cut from the Fed would be positive for Gold because it lowers the opportunity cost of holding the yellow metal, which is a non-interest-paying asset. This makes it more attractive to investors.
Federal Reserve set for first interest-rate reduction in four years amid growing bets of jumbo cut
The Federal Reserve is widely expected to lower the policy rate after the September meeting. The revised Summary of Economic Projections and Fed Chairman Powell’s remarks could provide important clues about the rate outlook.
UK CPI set to grow at stable 2.2% in August ahead of BoE meeting
The United Kingdom Office for National Statistics will release August Consumer Price Index figures on Wednesday. Inflation, as measured by the CPI, is one of the main factors on which the Bank of England bases its monetary policy decision, meaning the data is considered a major mover of the Pound Sterling.
Moneta Markets review 2024: All you need to know
VERIFIED In this review, the FXStreet team provides an independent and thorough analysis based on direct testing and real experiences with Moneta Markets – an excellent broker for novice to intermediate forex traders who want to broaden their knowledge base.