FOMC Meeting in the Spotlight on Wednesday the 30th of January
The FOMC is expected to announce its decision on the interest rate tomorrow, at 19:00 (GMT).
The bank is widely expected to remain on hold keeping the current level of +2.50%.
Fed’s Funds Futures support such a notion as they provide a 100% probability for such a scenario currently.
Overall, we could see the FOMC and/or its Chairman acknowledging the growing risks to the US economy as the global momentum seems to be weakening.
Growing uncertainty and soft economic data of the US economy, could be advising caution for the FOMC.
Recent comments by Fed officials, predispose us for a possible dovish tone in the accompanying statement. Should the dovish comments exceed the market’s expectations, we could see the USD weakening.
NFP data release on Friday at 12:30pm GMT
As you know, the first Friday every month signifies the release of the Nonfarm Payroll.
This is one of the most anticipated financial releases and is used as a gauge of economic health in the United States.
Generally, a high reading is seen as positive (or bullish) for the USD, while a low reading is seen as negative (or bearish).
Friday’s NFP release is expected to show that the U.S. added 167K jobs in January, a significant decrease from 312K jobs in November.
January’s Unemployment Rate is expected at 3.9%, again, and Average Hourly Earnings (MoM) are expected to increase by 0.3%, slightly down from last month’s 0.4%.
As well as impacting the value of the U.S. Dollar, the release can also impact the stock market and the price of gold.