The hawkish tone out of the Fed | 14 Diciembre 2021

14 Diciembre 2021, EUR/USD

The hawkish tone out of the Fed

EURUSD trading plan:

Traders expect an increasingly hawkish tone out of the Federal Reserve's two-day meeting that wraps up on Wednesday. The U.S. central bank is expected to signal a faster wind-down of asset purchases, which could also usher closer a start to interest rate hikes. The central bank hiking interest rates from near zero to 0.25%-0.50% in the third quarter of next year, followed by another in the fourth quarter. Short-dated Eurodollar futures are often regarded as a proxy for traders' view on the federal funds rate, the Fed's benchmark interest rate. Shorting, or selling, these contracts imply higher rates, while going long implies the opposite. This is a positive signal for the dollar.

Investment idea: sell 1.1320 and take profit 1.1275.

David Johnson
Analyst of «FreshForex» company
¿De acuerdo con la revisión?
Opinión de los comerciantes:
Close
Iniciar sesión
Su navegador no admite cookies. Si la cookie está desactivada en su navegador de Internet, es posible que tenga problemas con la representación del área Personal. Cómo habilitar el soporte para cookies.