Table of Contents
Affiliate Disclosure
Affiliate Disclosure DailyForex.com adheres to strict guidelines to preserve editorial integrity to help you make decisions with confidence. Some of the reviews and content we feature on this site are supported by affiliate partnerships from which this website may receive money. This may impact how, where and which companies / services we review and write about. Our team of experts work to continually re-evaluate the reviews and information we provide on all the top Forex / CFD brokerages featured here. Our research focuses heavily on the broker’s custody of client deposits and the breadth of its client offering. Safety is evaluated by quality and length of the broker's track record, plus the scope of regulatory standing. Major factors in determining the quality of a broker’s offer include the cost of trading, the range of instruments available to trade, and general ease of use regarding execution and market information.

FOMC Preview

A few hours from now, at 7pm London time, the Federal Reserve will release the minutes of the recent FOMC meeting, the contents of which will be keenly examined by the markets, which may then generate significant moves in USD and stock prices. It’s a simple action of a release of a statement (the minutes), and that is it.

So, what to watch out for? Well, it is already well established that the Committee sees balance sheet unwinding, i.e. the start of a real rollback of “quantitative easing”, as logically beginning next month. It is hard to believe there will be any change to that. If the minutes contain language which puts any doubt that this will happen next month, which is very unlikely, expect the Dollar to sell off heavily. Janet Yellen

The major thing to watch for will be any language pertaining to the timing of the next rate rise, which is widely expected to happen in December. Although that is some way off, the language on inflation is seen as the key to determining the probability of the timing of the next rate hike, so any increase or decrease in previously expressed language over low inflation could shift expectations. The most likely surprise would be for the next hike to be delayed some way into 2018, beyond December at the end of this year. If we see language supporting that later today, it should give stocks a boost and the Dollar a hit, although it is quite possible the moves will not be very large or sustained.

If stocks get a boost and you want to jump on the long trade train, the Dow Jones 30 Index looks more attractive than the more broadly-based S&P 500 Index. If the Dollar takes a hit and you want a currency to be long of against it, things are less clear. Surprisingly, there are hints the Australian Dollar might be your best bet, as the Euro is sustaining some damage after holding up against the resurgent greenback well lately.

Adam Lemon
About Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.

 

Most Visited Forex Broker Reviews