• DAILY UPDATES
  • MARKETS
    • Forex
    • CFDs
    • Spot Metals
    • Indices
  • ANALYSIS
    • Fundamental Analysis
    • Technical Analysis
  • ARTICLES
No Result
View All Result
FTD Limited
  • DAILY UPDATES
  • MARKETS
    • Forex
    • CFDs
    • Spot Metals
    • Indices
  • ANALYSIS
    • Fundamental Analysis
    • Technical Analysis
  • ARTICLES
No Result
View All Result
FTD Limited
No Result
View All Result

FOMC Expectations

December 16, 2020
in DAILY UPDATES, Forex, Fundamental Analysis, Home, MARKETS
Reading Time: 3min read
A A
Jerome H. Powell, the Federal Reserve chair
0
SHARES
11
VIEWS
tweetpostshare

Stimulus talks, rising Covid-19 cases, slowing employment recovery, and starting of vaccinations. Market expectations from FED are very mixed for today’s FOMC meeting because of the complex news flow as we have seen lately.

Current Economic Outlook

• Covid-19 is spinning out of control and more shutdowns will come not long after that. New York Governor already told that citizens should be ready for a total shutdown.
• Already weakened employment recovery is at risk as more shutdowns are on the way. People are already losing their unemployment checks due to the time limit and it will be going to get worse in the new year. Unpaid rents continue to increase homelessness risks.
• Fiscal stimulus package is still in the negotiations stage as it was for months. A lot of small to medium-sized businesses are in trouble. More shutdowns will increase default risks. But congress is started to give positive signals about finalizing the deal before the end of the year..
• Vaccinations are expected to start this week. This is a good development for the medium-term outlook.

Market Expectations

Bloomberg survey about when to expect new guidance from FOMC
Bloomberg survey about when to expect new guidance from FOMC

• Mainly markets expect from FED to upgrade their guidance system. More than %50 of economists expect new guidance from the FED. If FED links its bond-buying program to certain economic conditions this may positively affect the markets.
• Increasing the volume of the bond-buying programs seems unlikely in this meeting. FED may choose to “hold and watch” approach and wait for if fiscal stimulus package to unfold. But Powell will probably mention that FED is ready to do more if needed.
• In Bloomberg’s survey, 2/3 of economists said that they are expecting FED to extend the average maturity of bond purchases before the end of 2021. %23 of economists expected this extension will come in today’s FOMC meeting.
• An economic projection update is highly likely. With the incoming vaccinations, FED may increase growth forecasts and decrease unemployment forecasts in this meeting. This improvement will probably be small and Powell will mention that economy is still weak and recovery will take a long time. But if we see a big improvement of projections, this may spook the markets because of “FED will do less in the future” expectations.
• Powell will probably mention the need for fiscal support again.

Dollar Index | Daily Chart
Dollar Index | Daily Chart

Ahead of FOMC, Dollar Index is testing the 90.000 support level. This support level may become key for incoming weeks’ price actions.

Learn more about us

Tags: dollar indexeurusdFOMCGBPUSDgoldmarket expectationsXAUUSD
TweetShareShareSend
Previous Post

Wednesday, December 16, 2020 Headlines

Next Post

Silver is Breaking Bearish Trend Ahead of FOMC

Related Posts

USDTRY is Pricing Above the Bullish Wedge Formation
MARKETS

USDTRY Outlook After the CBRT Decisions

Tuesday, November 3, 2020 Headlines
DAILY UPDATES

Thursday, April 16, 2021 Headlines

USDJPY is Testing The 106.00 Resistance
MARKETS

USDJPY May be Getting Ready for a Bullish Turn

Tuesday, November 3, 2020 Headlines
DAILY UPDATES

Thursday, April 15, 2021 Headlines

GBPUSD's technical analysis
MARKETS

GBPUSD Found Support from the 100-Day Moving Average

Tuesday, November 3, 2020 Headlines
DAILY UPDATES

Wednesday, April 14, 2021 Headlines

Next Post
xagusd technical analysis article

Silver is Breaking Bearish Trend Ahead of FOMC

You might also like

USDTRY is Pricing Above the Bullish Wedge Formation

USDTRY Outlook After the CBRT Decisions

Tuesday, November 3, 2020 Headlines

Thursday, April 16, 2021 Headlines

USDJPY is Testing The 106.00 Resistance

USDJPY May be Getting Ready for a Bullish Turn

Tuesday, November 3, 2020 Headlines

Thursday, April 15, 2021 Headlines

GBPUSD's technical analysis

GBPUSD Found Support from the 100-Day Moving Average

Tuesday, November 3, 2020 Headlines

Wednesday, April 14, 2021 Headlines

Recent Posts

  • USDTRY Outlook After the CBRT Decisions
  • Thursday, April 16, 2021 Headlines
  • USDJPY May be Getting Ready for a Bullish Turn
  • Thursday, April 15, 2021 Headlines
  • GBPUSD Found Support from the 100-Day Moving Average
FTD Limited

The content of the site is presented for informational purposes only not to give any investment advice which mainly focuses on financial instruments such as Forex, Spot Metals, CFDs, and Indices.

MENU

  • DAILY UPDATES
  • MARKETS
  • ANALYSIS
  • ARTICLES

Latest Articles

  • USDTRY Outlook After the CBRT Decisions
  • Thursday, April 16, 2021 Headlines
  • USDJPY May be Getting Ready for a Bullish Turn

Subscribe to our newsletter and get notified about the next update.

    © 2020 FTD Limited

    FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.

    The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

    No Result
    View All Result
    • DAILY UPDATES
    • MARKETS
      • Forex
      • CFDs
      • Spot Metals
      • Indices
    • ANALYSIS
      • Fundamental Analysis
      • Technical Analysis
    • ARTICLES

    © 2020 FTD Limited

    FTD Articles is a website prepared by FTD Limited's research team. FTD Limited is an online brokerage company offering products of Forex, Spot Metals and CFDs.

    The ideas and the information shown here have no responsibility of any of the trading decisions made by the investors or the visitors of this site. Therefore, under no circumstances will FTD Limited nor FTD Articles be held responsible or liable in any way for any claims, damages, losses, costs or liabilities resulting or arising directly or indirectly from the use of website content. We recommend that you seek advice if you have not involved with trading before in order to prevent potential risks that may arise.

    Welcome Back!

    Login to your account below

    Forgotten Password?

    Create New Account!

    Fill the forms below to register

    *By registering into our website, you agree to the Terms & Conditions and Privacy Policy.
    All fields are required. Log In

    Retrieve your password

    Please enter your username or email address to reset your password.

    Log In
    This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.