Today, the Federal Reserve will announce its latest interest-rate decision. A 75-bp hike is considered a sure thing. Traders are rather looking for hints about plans to ease back from the Fed’s aggressive pace of hikes. Possible signals about a less-hawkish stance would be dollar-negative. However, given the hotter than expected September U.S. inflation report and the strong September nonfarm payrolls, the most likely scenario is continued aggressive policy tightening – at least until the end of 2022.
On Friday, the October U.S. jobs report will provide an important look at the health of the labor market.
On November 8, the U.S. mid-term elections could lead to a change in which party controls Congress. Stock bulls are hoping for a divided Congress, which has historically benefited equities.
On November 10, economists will be watching the consumer price index for signs of a further pullback in order to shape expectations for the Fed’s path. A lower reading could be dollar-negative on the back of increased risk appetite.
After an extended trading break, we have been back at the trading desk for three weeks now and have already been able to make a few profits. From 7 November 2022, we will also be offering our signals service again for all interested traders.
We wish you all good trades!
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