The focus of traders the Fed meeting, the results of which will be announced at 21:00 GMT. After 30 minutes, then at 21:30 MSK will be held a traditional press conference by Fed Chairman Jerome Powell. Despite the fact that the reduction in key interest rates at this meeting actually already solved the issue, traders are much more interested in the American regulator plans for further monetary policy vector. According to CME FedWatch traders estimate the probability of a rate cut by 25 basis points by the end of this meeting is 78%. At the same time, 22% is still expected to reduce it by 50 basis points.
It should be noted that the decision will be made at the rate of 10 voting members. As Powell has already come under fire from US President Donald Trump for not doing enough to support the economy, its task can be even more complicated if one or two officials vote against. For this reason, it is important to understand the market, whether there are among Fed officials, those who do not agree with the course of Powell taken on policy easing.
Recall that on this will depend directly on the Fed's ability to go on another rate cut this year. Any hint in this direction would be enough to weaken the US dollar. In turn, the Bank of Japan on Tuesday, as expected, did not begin to make sensational statements and refrained from expanding stimulus, thereby enabling to continue to act out the idea of contrast, the US and Japan monetary policy.
USDJPY SellLimit 108,70 TP 107,10 SL 109,20
Analytical reviews and comments reflect the personal opinion of the authors and are not a recommendation to trade. Author Artem Deev trader analyst AMarkets.Sotsialnaya Traders community is not responsible for any losses in the case of the review of materials
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