Good day forex traders.
It is almost the end of the week and I hope everyone’s trading is in the green.
In the latest US Federal Reserve meeting minutes, there was an indication of a sooner than expected rate hike. BBC reports ”
Federal Reserve officials have said they may need to raise interest rates “fairly soon” if the economy stays strong, minutes of their meeting show.
The first meeting of the Fed since Donald Trump took office as president discussed the possibility of a rate rise as early as March.
Most economists have been forecasting a rise in June.
However, Fed officials appear divided on the timing of a rise amid uncertainty over Mr Trump’s policies.
“Several” expressed fears that unemployment could fall substantially below the Fed’s 4.8% target. That could trigger inflation pressures and force the Fed to boost rates at a faster pace than financial markets expect.
Unemployment in December was 4.7%, although it was back at 4.8% in January. ”
A number of analysts commented that the words fairly soon may indicate a hike as early as March. With anticipation building up, sentiments may induce a rise in the US dollar. As mentioned in the forex school on the effect of high interest rate on currencies, demand may go up.