The world watching for Fed to raise interest rate

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FOMC will meet and release the statement at 2 a.m., Thursday, March 22nd, the statement is the decision and overview of FOMC

Chairman of Fed (Federal Reverse), Jerome Powell and his colleagues are expected to raise interest rate 4 times in a row this year. When Bloomberg conducted a survey among 41 economists from March 13-16th, median interest rate was forecasted to increase in the first quarter of 2018 and the same forecast for FOMC (Federal Open Market Committee) in June, September and December.

fed, euro, usd, forex, eurusd, fomc, Jeremy powell, rate hike.
Forecast of Fed interest rate in 2018

FOMC will meet and release the statement at 2.00pm EST, Wednesday, March 21st, the statement is the decision and overview of FOMC about the economy and other milestones such as overnight rate, economic growth, unemployment rate and inflation.

The result of the survey showed that the economists believe the authority will observe the investors’ action in the situation of faster global growth, tax cutting and increase government spending. The authorities speculate the fiscal stimulus package can tighten labor market and increase inflation market of central bank to 2% or more.

Fed is trying to wake the US economy after the financial crisis in 2008 and increase the overnight market 3 times in 2017 from 1.25% to 1.50%, reduce unemployment rate and the economy is growing again. The interest rate is expected to increase 25 basic points to 1.75% in the first quarter of 2018.

Overview EUR/USD price

fed, euro, usd, forex, eurusd, fomc, Jeremy powell, rate hike.
 Price chart EUR/USD, 1D, 21/03/2018

USD decline 0.2% against a basket of currencies, after almost hit the 3-week high on Tuesday, March 21st. USD depreciated against Japanese Yen and Euro, that create opportunity for EUR and JPY to recover. JPY/USD is at $0.00946 on March 21st (increase 0.2%) and GBP/USD is trading at $1.41498 (increase 0.5%).

When USD depreciates, EUR increase 0.4% and is trading at $1.2282, after reach 3-week low at $1.2240.

Analysis article of nami.today

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