Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Fed To Cut Rate Hikes Projection: Buy EUR/USD

By MyFXspot researchForexMar 20, 2019 09:33AM ET
www.investing.com/analysis/fed-to-cut-rate-hikes-projection-buy-eurusd-200399384
Fed To Cut Rate Hikes Projection: Buy EUR/USD
By MyFXspot research   |  Mar 20, 2019 09:33AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

MyFXspot.com Trade Ideas

  • EUR/USD: buy at 1.1310, take profit at 1.1520, stop-loss 1.1200
  • EUR/JPY: long at 126.00, take profit at 129.00, stop-loss 124.50
  • XAU/USD: long at 1300.00, take profit at 1360, stop-loss 1270.00

Market Overview

The U.S. Federal Reserve is expected to hold interest rates steady today, cut the number of hikes projected for the rest of the year, and release long-awaited details of a plan to end the monthly reduction of its massive balance sheet.

The U.S. central bank since early this year has signaled a "patient" approach to increasing borrowing costs, drawing an end to a gradual, three-year cycle of monetary tightening marked by nine rate hikes, including seven during the 2017-2018 period.

Fed Rate And US Inflation
Fed Rate And US Inflation

Investors now put a 75% probability on the likelihood the Fed won't raise its overnight benchmark interest rate, or federal funds rate, any more this year.

New quarterly economic and rate projections to be released with the latest Fed policy statement will show how closely policymakers align with that view. The Fed's December projection called for two hikes this year, but that is widely expected to be cut to a single increase at the conclusion of the two-day policy meeting on Wednesday.

It would take a downward move by seven policymakers to bring the median expected number of hikes to zero for the year, a full half-percentage-point change that has happened only once since the Fed began making its "dot plot" of projections public in 2012.

The more intense focus among investors may be on the balance sheet, and the Fed's plans to stop reducing its holdings of Treasury bonds and mortgage-backed securities each month by as much as USD 50 billion.

Details of that plan are also expected to be released on Wednesday, providing investors with a sense of how much longer the drawdown will continue, and what will likely be left in the Fed's portfolio of assets when it stops.

EUR/USD bulls look set to test the key 1.1374 Fibonacci level, a 50% retrace of the 1.1570 to 1.1177 2018 slide, after spot registered the biggest one-week rise since November 2018. We are looking to get long on dips to 1.1310.

Economic research and trade ideas by MyFXspot.com

Fed To Cut Rate Hikes Projection: Buy EUR/USD
 

Related Articles

Al Brooks
EUR/USD Turning Down By Al Brooks - Jun 18, 2021 1

– EUR/USD is turning down from a lower high major trend reversal on the weekly chart. It is also the right shoulder of a head-and-shoulders top. – Breakout below the May 5 low at...

Fed To Cut Rate Hikes Projection: Buy EUR/USD

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email