The growth indicators and policies of the Central Bank had a great impact on the Forex trade and the various awaited meetings and on-hold issues of the government sets the different trends of trading.
The on-hold decisions that were supposed to bring changes in the currency trading and fluctuations in the market positions in the coming week, includes the following news.
FMOC decision; Germany IFO survey report is in queue; US durable goods order data release; BoE meeting facts and NZ GDP report were some of the hot topics for this upcoming week.
FMOC decision:
The Federal Open Market Committee is making plans to maintain the Fed funds at the benchmark of 0-0.25 percent until the end of this month.
In January, FMOC said that they are likely to continue the strategy in order, “To anticipate that economic conditions are likely to warrant exceptionally low levels of the federal funds rate for some timeâ€, and they are still sticking with their plan.
They are also focusing to support the operation of Forex market through Quantitative Easing with the intention to maintain the Federal Reserve‘s accounts clear and at the high.
The FOMC Committee policies, regarding the expansion of QE attempts or their exclusion of such efforts, will decide the upcoming condition of the Forex market.
The Central Bank may boost the treasury purchases, which will lay negative impact over the USD, they are expecting to accomplish the program until next month.
BOE Meeting:
The Forex market and impact on growth rate is still to see as the data release of the BOE‘s meeting, which is yet to come.
The Quarter Inflation Report has been revealed earlier so they will not give any new data about the inflation rates.
The increase in US CPI has changed the prices, which is higher than the BOE‘s price base points.
Consequently, the highlights of the BOE meeting will shift the market-trading track back towards the central bank‘s moderate position of QE and this may downturn the GBP.
These are some of the market movers that can cause changes in the positions of the major currencies in the Forex market.
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