Yesterday's FOMC decision and the subsequent press conference with Fed Chairman Jerome Powell did not really reveal much that was new. As a result, the US dollar barely reacted to the events, which must have come as a relief to many market participants after an exciting week, Commerzbank’s FX analyst Michael Pfister notes.
“In my opinion, there are only three facts worth mentioning. The FOMC is very confident that inflation is no longer a major problem. The part of the core PCE that is still exerting the greatest pressure on prices is, in their view, due to catch-up effects and should soon fade.”
“The real economy remains extremely strong, and they even see opportunities for even stronger growth next year than this year. The rate cuts are simply to ensure that this is the case.”
“And Powell has made it very clear that he has no intention of resigning if Donald Trump asks him to. He also made it clear that it would not be legally possible to remove him from office. All three of these factors are fundamentally positive for the USD and therefore encourage us to expect further USD strength in the coming months.”
© 2000-2024. All rights reserved.
This site is managed by Teletrade D.J. LLC 2351 LLC 2022 (Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines).
The information on this website is for informational purposes only and does not constitute any investment advice.
The company does not serve or provide services to customers who are residents of the US, Canada, Iran, The Democratic People's Republic of Korea, Yemen and FATF blacklisted countries.
Making transactions on financial markets with marginal financial instruments opens up wide possibilities and allows investors who are willing to take risks to earn high profits, carrying a potentially high risk of losses at the same time. Therefore you should responsibly approach the issue of choosing the appropriate investment strategy, taking the available resources into account, before starting trading.
Use of the information: full or partial use of materials from this website must always be referenced to TeleTrade as the source of information. Use of the materials on the Internet must be accompanied by a hyperlink to teletrade.org. Automatic import of materials and information from this website is prohibited.
Please contact our PR department if you have any questions or need assistance at pr@teletrade.global.