Will Our Dollar Derail From The Rebound Course? FOMC And PCE Price Index Eyed This Week
Share on facebook
Share on twitter
Share on telegram
Share on whatsapp
investors, benefits, forex, trading, trade

Author: Mr. Amar – Technical Analyst    

The US Dollar showed some positivity as it closed at +0.49% last week which almost eradicates the previous losses. The main problem now is the Russia-Ukrainian conflict where most of the European countries are against Russia’s invasion. The United States on Sunday said it was ordering the departure of eligible family members of staff from its embassy in Ukraine and that all citizens should consider leaving due to the threat of military action from Russia.

U.S. and Russian diplomats made no major breakthrough at talks on Friday and Moscow has been massing troops on the border with its neighbor. On Sunday, Britain accused the Kremlin of seeking to install a pro-Russian leader in Kyiv. Although the news should ideally drown antipodeans and commodities, prices of AUD/USD, NZD/USD, and gold have largely been unaffected by the news. However, WTI crude oil seems to benefit from the fears of supply outage, up 0.60% intraday near $86.

This week’s economic calendar will prove all predictions with the first Federal Reserve policy meeting of the year has already stoked a great deal of speculation in financial markets. High expectations for hints of an accelerated rate of monetary tightening. Thursday’s morning FOMC meeting could represent a significant turning point for a number, not just for the US Dollar, but for all currencies and asset classes. If the FOMC disappoints, the US Dollar may be in trouble. Other than that, on Friday, the December US PCE price index is due, as are December US personal income and personal spending figures.