The Fed to hike rates by 50 basis points | 22 Abril 2022

22 Abril 2022, EUR/USD

The Fed to hike rates by 50 basis points

EURUSD trading plan:

Federal Reserve Chairman Jerome Powell said that a 50 basis-point rate hike was on the table for the May meeting as the central bank aims to step up the pace of monetary policy tightening to curb elevated inflation. "I would say that 50 basis points will be on the table for the May meeting," Powell said in an IMF panel discussion. The Fed chairman also backed the idea of the central bank hiking aggressively at the start of the tightening cycle, or front loading more than one 50 basis-point hike at future meetings. Traders expect the Fed to hike rates by 50 basis points at each of the next three meetings in an attempt to curb demand, and overall inflation, which is well above the central bank's 2% target.

Investment idea: sell 1.0870 and take profit 1.0799.

David Johnson
Analyst of «FreshForex» company
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