Sunday, June 26, 2022

The FOMC Meeting Minutes

The FOMC Meeting Minutes is scheduled to be released early on Wednesday. This record will reveal in-depth details regarding the FOMC meeting that was held two weeks earlier in March. The Federal Open Market Committee holds a meeting every quarter in order to discuss any changes that they may want to bring to the economic and monetary policies for the country. The FOMC Meeting Minutes will reveal exactly how these members came to the decisions they made regarding the policy changes. It will also reveal their thoughts on the changes in policies and what they plan on bringing to the table in order to combat any objections.

FED must take proper tapering assets tools or rate hikes in interest rates is benefitted to Economy.

As a result of the FOMC meeting held in March, it was revealed that the interest rates would be increased by 0.25% more than how they had always been previously. This made the interest rates at a solid 0.50%. The FOMC Meeting minutes will reveal how exactly they came towards this decision and what they plan on doing with it in the long term. In anticipation of what this meeting might present in these minutes, the dollar markets have not been quiet. The Dollar index has risen in anticipation of the release of these minutes and this has therefore caused the dollar markets to be impacted as well. We’ll get into more detail below on how exactly some of the major currency pairs have been impacted in anticipation of the results of this meeting.

Impact On EURUSD

The EURUSD currency pair has been experiencing bearish market conditions this entire week. The anticipation of the release of the FOMC Meeting Minutes has certainly not helped either. This major pair has been trying really hard to stay above support levels but it doesn’t last very long and it ends up falling back under support levels once again.

EURUSD Daily Time Frame Market has rebounded from the lower low area of the Descending channel

EURUSD Daily Time Frame Market has rebounded from the lower low area of the Descending channel

Just today alone, EURUSD has touched lows of around 1.087 and highs of around 1.092 within a matter of a couple of hours. Currently, this dynamic duo is seen around the 1.09 mark as it decides whether it wants to make its move back up or fall back down. While analyzing this market for the release of the FOMC Meeting Minutes, we must also keep an eye on the geopolitical crisis in Europe as it is currently the major factor impacting its markets.

Impact GBPUSD

GBPUSD H1 Time Frame Market has Fallen from the Lower high area of the Descending triangle pattern GBPUSD H1 Time Frame Market has Fallen from the Lower high area of the Descending triangle pattern

The GBPUSD currency pair has not been doing so well recently. The rise in the dollar index has caused this major currency pair to drop once again after it has barely been able to keep its head above support levels. This entire week, GBPUSD has tried to maintain its value around the 1.3130 region. It faced slight ups and downs throughout the week but overall, it was pretty successful at staying at this rate. However early today, GBPUSD had fallen quite significantly due to the anticipation of the release of the Meeting Minutes. Just today, GBPUSD has reached lows of 1.304 and highs of 1.310.

GBPUSD Daily Time Frame Market has reached the Lower Low Area of the Descending Channel.

GBPUSD Daily Time Frame Market has reached the Lower Low Area of the Descending Channel.

It is currently teasing around the 1.307 region and it seems as though there’s something pulling it above resistance levels. This is probably the fact that the GDP report for the UK was recently released. This report showed that Pakistan’s GDP is greater than what was forecasted. This positive news has been pulling GBPUSD above resistance levels while the FOMC Minutes anticipation has been pulling it below support levels.

Impact On USDCHF

USDCHF H1 Time Frame Market is moving in the Descending channel and Market has reached the Lower high area of the Descending channel.

USDCHF H1 Time Frame Market is moving in the Descending channel and Market has reached the Lower high area of the Descending channel.

USDCHF is one of the few currency pairs that has actually benefitted from the upcoming release of the FOMC Meeting Minutes. This dynamic duo has been trending up the charts all day and it doesn’t seem like it intends on slowing down anytime soon. The past entire week it had barely been showing any movement and had mainly stayed stable for the most part.

USDCHF H4 Time Frame Market is moving in an Ascending channel and Market has reached the Lower high area of the Minor Descending channel under Major Ascending channel. USDCHF H4 Time Frame Market is moving in an Ascending channel and Market has reached the Lower high area of the Minor Descending channel under Major Ascending channel.

However early today as a result of the upcoming FOMC Minutes release, the dollar index shot up which caused USDCHF to sharply rise as well.This has caused the USDCHF to break its weekly high when it crossed the 0.934 point. It is currently trending around the 0.933 region as it anticipates moving further up the charts or staying stable around its current position till the minutes are actually released.

Impact On USDJPY

USDJPY H1 Time Frame Market is moving in an Ascending channel and the Market has Consolidated at the higher high area of the channel.

USDJPY H1 Time Frame Market is moving in an Ascending channel and the Market has Consolidated at the higher high area of the channel.

The USDJPY markets have been among the most benefitted as a result of the several economic conditions surrounding the two countries and the rest of the world. The USDJPY currency pair has crossed its 6-year high once again as it now reaches the 123.9 region. Just today it had managed to reach highs of 124.0 and it seems as though this mark has become a common meeting ground for the major currency pair these days.

USDJPY Daily Time Frame Market is moving in an Ascending channel and Market has rebounded from the higher low area of the Extended Ascending channel line.

USDJPY Daily Time Frame Market is moving in an Ascending channel and Market has rebounded from the higher low area of the Extended Ascending channel line.

It is quite intriguing to think that if this currency pair had gone just a bit higher towards the 125.0 region, it would have broken its 20-year high record. This goal does not seem far and if the minutes in the meeting are as expected or better, USDJPY will face a further uptrend and will definitely brake its 20-year high.

Impact On XAUUSD

XAUUSD H1 Time Frame market is moving in the Descending triangle pattern

XAUUSD H1 Time Frame market is moving in the Descending triangle pattern and the Market has rebounded from the Lower high area of the Descending triangle Pattern.

XAUUSD has been pretty unpredictable this entire week. It can’t seem to make up its mind on whether it wants to continue to drop or rise. Whenever Russia and Ukraine seem to have their region under control, XAUUSD will drop quite a bit. However, as tensions continue to rise, this valuable commodity will also rise with it.

XAUUSD Daily time Frame Market is moving in an Ascending channel and the Market has consolidated at the higher low area of the Horizontal Support area of the Ascending channel.

XAUUSD Daily time Frame Market is moving in an Ascending channel and the Market has consolidated at the higher low area of the Horizontal Support area of the Ascending channel.

XAUUSD is currently teasing around the 1919 mark and it is currently unclear what it plans on doing in the near term. Looking at the trading chart, we don’t see any trends or patterns that could help us in determining the direction it plans on turning. Charts like these are to be avoided until it is clear who is responsible for the disruption in trading opportunities surrounding this valuable commodity.

Upcoming Important Events

There are two events upcoming later today, aside from the Meeting Minutes to be held a bit later. The first is the release of the inventory levels for Crude Oil in the United States. This is an important measure of the inflation crisis of the country. We are also expecting the release of the Ivey PMI which is a measure of the activity levels of the Purchasing Managers in Canada.


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