The results of the US FOMC meeting will be announced today. The market seems to be hoping that the content of Fed Chairman Powell’s speech at Jackson Hole will be more concrete. In other words, as a new strategic policy, it aims to maintain a lower interest rate policy for a longer period than before by emphasizing employment and averaging the inflation target of 2% over a period of time.
In the foreign exchange market, it seems expected that the dollar depreciation trend will be prolonged and stabilized by clarifying the new direction of the US financial authorities. At the ECB’s board meeting the other day, there was no dovish color to compete with the US financial authorities. Lagarde has not seen a strong restraint against the appreciation of the euro. There is a big difference in the image of monetary policy between the two major currencies in the world, the dollar and the euro. However, that also depends on the content of today’s FOMC meeting and the meeting of Chair Powell.
Also, today, FOMC members are planning to announce interest rate forecasts and economic forecasts. It seems that the market will be full of topics. The reaction of the US stock market following the announcement will be the point. If adjustment sales seem to come in rapidly, it will be easy for positions to rewind in the foreign exchange market, and the market will likely be rough.
it’s hard to move ahead of the FOMC.
Basically, we plan to wait until after the FOMC, but if there is a big buy from the rebound of USD selling in a straight line, we will consider following it as a short-term trade.