The following is Live March FOMC video and Forex analysis for EURUSD and Gold. Along with FOMC Economic Projections and FOMC Statement highlights. Will we see first Fed interest rate hike in 2017?
15 March, AtoZForex – The most important event of the week is about to start. The entire Forex market is eyeing the FOMC meeting and the live March FOMC press conference. There is no better place to watch FOMC press conference than on AtoZForex, you can find the live March FOMC video bellow. Please note that the press conference starts at 18:30GMT.
Before the live FOMC conference, we will first have FOMC Economic Projections and March FOMC Statement highlights. As well as Forex analysis for EURUSD and Gold to asses the data impact on the financial market.
Live March FOMC video
Live Forex analysis & FOMC meeting highlights
The following is live Forex market analysis and highlights for FOMC Economic Projections and March FOMC Statement.
Note: Don’t forget to reload the page to see the latest updates.
19:30 GMT This concludes March FOMC meeting. Unfortunately, today’s technical analysis did not pan-out as expected. This might be because of combined volatility from the FOMC meeting and US President Donald Trump speech, as he talks about “new economic model” to make America great again which will require cheaper Dollar.
19:15 GMT Based on 1min Forex trading strategy, we could sell Gold from the current level. And with a stop loss at 1218, aim back lower towards 1212 as our first target and 1208 as second.
19:05 GMT To put it in a simple way, today’s Fed rate hike implies that “the economy is doing well,” according to Janet Yellen.
18:59 GMT The Committee doesn’t yet see any hard evidence that expectations of further rate hikes would affect the spending.
18:49 GMT The Committee has removed the word “only” from “gradual rate increase” in the FOMC Statement. But Janet Yellen does not see the change as that much hawkish or significant that some might think.
18:41 GMT Short term Federal Funds Rate remains the Committee’s main tool for controlling the US economy. While the ongoing balance sheet expansion can be seen as plan B to support short term Fed rates.
18:39 GMT Fed Balance sheet normalization is well underway and will be gradual and predictable.
18:36 GMT Janet Yellen began by noting that steady participation rate is an indication of improvement in conditions. Core inflation has been little changed in recent months but is expected to increase.
18:30 GMT Live March FOMC Press Conference is now starting.
18:26 GMT Gold broke above the nearby resistance at 1208 and is now eyeing 1218. However, from 15min timeframe, the precious metal has stagnated ahead of the press conference. Therefore we could expect the volatility to resume with the start of the live meeting.
18:19 GMT The market has taken the FOMC Economic Projections and March FOMC Statement as slightly dovish, hence the immediate USD devaluation. Now we wait for the FOMC Press Conference.
18:13 GMT The Fed also kept to the expectation of 2 more rate hikes in 2017. Five members foresee three or more hikes. Nine expect two rate hikes, one member sees just on hike and two member don’t expect any hikes in 2017.
18:09 GMT Since the Committee met in February:
The labor market has continued to strengthen and that economic activity has continued to expand at a moderate pace. Job gains remained solid and the unemployment rate was little changed in recent months. Household spending has continued to rise moderately while business fixed investment appears to have firmed somewhat. Inflation has increased in recent quarters, moving close to the Committee’s 2 percent longer-run objective; excluding energy and food prices, inflation was little changed and continued to run somewhat below 2 percent.
18:01 GMT As expected, the Fed has increased rates to 1.0%. Yet the USD depreciated across the board. Let us look at FOMC Statement and projections for more details.
17:50 GMT Looking at hourly Gold chart, the precious metal remains to trade towards the downside suppressed by 20 and 100 hour moving averages. Current price formation of lower lows and lower highs suggest another opportunity to short Gold. As such risk/reward would favor selling Gold from nearby resistance level at 1208. The order would be confirmed with a Fed rate hike. Note that you should lower your risk exposure by half and not risk more than 1% when trading during news announcements.
17:38 GMT Market consensus is for an increase in Federal Funds Rate to 1.0%. But for the past couple of months, excluding March, we saw Gold increasing in price. This would imply that investors were eyeing May FOMC meeting and should the Fed hike rates today, we might see further USD gains in the immediate aftermath.
17:31 GMT Looking at pre-FOMC GBPUSD Elliott wave analysis AtoZ Forex Currency Analyst Sanmi Adeagbo wrote that with price ranging between 1.2250 and 1.2105, the FOMC could cause a breakout above 1.2250 or below 1.2105. If price breaks above 1.2250, we can expect the rally to continue throughout March and if below 1.2105, we can expect it to 1.195-1.197. More updates will come after the FOMC meeting.
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