Category Fed Interest Rate Decision

Upcoming U.S Non Farm Payrolls NFP 5th April

Upcoming U.S Non Farm Payrolls NFP 5th April

Upcoming U.S Non Farm Payrolls NFP 5th April. The past non-farm payrolls (NFP) report is a critical economic indicator that provides valuable insights into the health of the labor market in the United States.

Released by the Bureau of Labor Statistics on a monthly basis, this report details the total number of jobs added or lost in non-farm industries, excluding farming and government employment.

Investors, policymakers, economists, and analysts closely monitor this data as it sheds light on trends in job creation, unemployment rates, wages, and overall economic growth.

A higher-than-expected NFP figure typically signals a strong economy and may lead to increased consumer spending and business investments.

On the other hand, a lower-than-expected NFP figure indicates potential weakness in the labor market and could impact financial markets and monetary policy decisions.

Therefore, understanding and interpreting past NFP reports is crucial for making informed decisions in both personal finance and professional settings.

The last Non Farm Payroll trades with us

Before I speak about the non farm payrolls of last months, let me recapitulate on the NFP news released before that. If you have been following me on the website or my youtube channel, you will realise all my predictions for the NFP news have been a success.

We sometimes find challenges when the news comes in competition with other news releases. Besides, I always trust my intuition and find the best trading strategy suited for that challenge.

That’s the case with the past Non Farm Payrolls report. I did put too much attention on the NFP itself and neglected the unemployment rates. The two news mentioned followed by the Hourly Earnings can be a big burden to your trade.

So what happened last time, the direction was very well predicted and and before the news reached its final destination on the chart it reversed very brutally. I’m pretty sure many people have blown their account that day.

Speaking of intuition, I knew something wasn’t right and came up out of the trade very fast before the reversal. I really hope for the upcoming Non Farm Payrolls of the 5th April to trade at full potential.

As a reminder, it’s now been three years since I am on the green trading the NFP news. I really hope what was yesterday will be today and forever. NFP is among the forex news where I really put my energies because it’s worth it.

I always recommend fundamental scalpers, news traders to choose what is important in the forex business as this forex world is just too big. I have also noticed that all the small news that happens during the weeks are really energy drainers.

You can save big money and trade it for big news, don’t be impatient. That will lead you to turn around in a vicious circle with a bonus on headaches and stress. NFP news, CPI news and today’s boring Fed News are really worth trading for a life changing experience.

Forex news prediction calendar on forexnewspredictions.com website

As we speak about small news releases during the week, the website forexnewspredictions.com have created a calendar with news predictions. This is because most of you have demanded more signal services besides what the website had projected for.

Of course since this innovation, the calendar has been helpful for many traders who found interest in it. By checking the predictions history on the calendar, you will notice a lot of wins and few losses.

As you all know, you can’t win it all in this game. But you can if you focus on one, two or three trades only monthly, as I explained above.

My prediction on Upcoming U.S Non Farm Payrolls NFP 5th April

The upcoming non-farm payrolls news scheduled for April 5th, 2024 is anticipated to be a critical event for economists, investors, and policymakers alike.

Non-farm payroll data is a key indicator of the overall health of the U.S. economy, as it provides valuable insights into job creation and employment trends.

Analysts will closely scrutinize the report for any signs of wage growth, labor force participation rates, unemployment levels, and sector-specific performance.

This information is crucial for guiding monetary policy decisions by the Federal Reserve and forecasting market movements. As such, market volatility may increase leading up to and following the release of this highly anticipated economic data.

Traders and investors are advised to stay informed and exercise caution while interpreting and reacting to the implications of this essential report on April 5th, 2024.

At least for now we have an idea of the Unemployment Rates reports to come because of of last prediction. As I said previously we really wish all the news to align in one direction for potential full win.

With the aid of the prediction calendar, we have done a lot to help you win trades and stay profitable. Do me a favour and support my effort by subscribing to receive my accurate prediction on the upcoming Non Farm Payrolls news on the 5th April 2024.

Update Non Farm Payrolls NFP news 5th April 2024

The U.S job market reports and forecasts by economists these days are very messy. You will notice the “actuals” keeps changing upon almost every news release.

But for us traders, what matters is to beat the forecasts in order to make money. So as per my analyses, it starts to look very true regarding the fed rates cut this year.

Simply because, I have noticed the U.S job market starts cooling. Yes, even the Non Farm Payrolls of 5th April 2024 are going down on the chart.

Given a forecast of 205k by economists on investing.com and 200k on other websites, I strongly believe the result will be above that. So I expect the results to be around 210k-225k for April 5th 2024 NFP news.

In conclusion, I will buy the USD and I am convinced this trade will be at full potential with no ugly surprises. In general, we have a big chance to go bullish with all three news to be released on the same day.

Join me on WhatApp too.

Upcoming Core Consumer Price Index CPI March 12th

Upcoming Core Consumer Price Index CPI March 12th

Upcoming Core Consumer Price Index CPI March 12th. The upcoming US Consumer Price Index (CPI) release of 12th March 2024 is highly anticipated by economists, policymakers, and investors alike as it provides a crucial gauge of inflation in the country.

In light of recent economic turbulence caused by the ongoing COVID-19 pandemic and subsequent government stimulus measures, there is heightened interest in understanding how prices are trending across various sectors of the economy.

The CPI data will shed light on whether inflationary pressures are building up or if deflationary forces are at play. This information is vital for guiding monetary policy decisions, forecasting economic growth, and making investment choices.

Analysts will closely scrutinize the CPI report to assess the impact on consumer spending patterns, wage growth, and overall market sentiment. As such, market volatility may be expected following its release as investors react to any surprises or deviations from consensus forecasts.

CPI News impact

The Consumer Price Index (CPI) is a key economic indicator that measures the changes in the prices paid by consumers for goods and services. When CPI news is released, it can have a significant impact on financial markets and investor sentiment.

A higher than expected CPI reading may signal rising inflation, leading to concerns about potential interest rate hikes by central banks. This could cause stock prices to fall as investors anticipate tighter monetary policy.

Conversely, a lower CPI reading may be seen as a sign of weaker demand and economic activity, prompting fears of deflation. As such, investors closely monitor CPI data releases for insights into future trends in the economy and potential investment opportunities or risks.

Why to trade Upcoming Core Consumer Price Index CPI March 12th

Trading CPI (Consumer Price Index) news can be a lucrative strategy for experienced traders due to the significant impact it has on global financial markets. CPI is a key economic indicator that measures inflation rates and consumer purchasing power, directly impacting interest rates and currency values.

As such, when CPI data is released, it can cause market volatility and present trading opportunities for those who are prepared to act swiftly. By closely following CPI releases and understanding their implications on various asset classes, professional traders can capitalize on the price movements that result from these reports.

Additionally, trading CPI news allows traders to stay informed about broader economic trends and make better-informed decisions in their trading activities. Overall, incorporating CPI news into a trading strategy can provide valuable insights and enhance profitability in the competitive financial markets.

CPI of march 12th news prediction

The Consumer Price Index (CPI) released on March 12th provides valuable information for investors looking to make informed decisions about buying or selling assets. The CPI measures the average change in prices paid by consumers for goods and services, indicating the rate of inflation.

A higher CPI suggests that prices are increasing, potentially leading to a decrease in purchasing power. Conversely, a lower CPI indicates deflationary pressures and may signal economic weakness. Investors can use this data to anticipate future interest rate movements by central banks, adjust asset allocations accordingly, and hedge against inflation or deflation risks.

Ultimately, understanding and analyzing the CPI of March 12th news is essential in making well-informed investment decisions in today’s dynamic market environment. Based on current economic indicators and market trends, the Consumer Price Index (CPI) for March 12th is predicted to show a slight increase in inflation rates.

Factors such as rising energy costs, supply chain disruptions, and strong consumer demand have all contributed to inflationary pressures in recent months. Analysts are closely monitoring core inflation metrics, which exclude volatile categories like food and energy prices, to gauge the underlying trend in price levels.

The Federal Reserve continues to closely monitor CPI data as they consider monetary policy decisions moving forward. Investors and policymakers will be paying close attention to the release of the CPI report on March 12th for insights into potential future interest rate movements and overall economic stability.

Zama Zama Fx Prediction Upcoming Core Consumer Price Index CPI March 12th

The Consumer Price Index (CPI) of March 12 has been a hot topic in economic forecasting circles, as analysts eagerly awaited the release of this key indicator.

The CPI is a measure of inflation based on the prices of a basket of goods and services typically consumed by urban households. This data is crucial for policymakers, economists, and investors to gauge the health of the economy and make informed decisions about monetary policy.

My March 12 CPI forecast is expected to show whether inflation rates are accelerating or moderating, which could have significant implications for interest rates, stock market performance, and consumer confidence.

Analysts will be closely monitoring this news forecast to assess the impact on the markets and anticipate potential economic trends moving forward. Based on recent economic indicators and trends, I am predicting that the core Consumer Price Index (CPI) for March 12th, 2024 will exhibit a modest increase in the month-over-month comparison.

This prediction is supported by various factors such as rising energy prices, increased consumer demand, and supply chain disruptions. Additionally, the current inflationary pressures and labor market dynamics are likely to contribute to this uptick in core CPI.

It is important for policymakers and market participants to closely monitor these developments as they can have significant implications for monetary policy decisions and overall economic performance. In conclusion, while the exact magnitude of the increase remains uncertain, all signs point towards a slight rise in core CPI for March 12th, 2024.

Important: We may experience duality on the news release. The candle may fly up and then come down and vice versa. I strongly believe the CPI YoY will be negative USD based, the CPI MoM to be equal or superior to the forecast and the Core CPI to also be equal or superior to the forecast.

In conclusion, I will buy the USD and let things be…. this can be updated anytime.

Non Farm Payroll NFP News Prediction 8th March

Non Farm Payroll NFP News Prediction March 8th

Non Farm Payroll NFP News Prediction March 8th. The non-farm payroll report is a crucial economic indicator that provides insight into the health of the labor market in the United States. Past non-farm payroll results have shown fluctuations in job growth, unemployment rates, and wage increases.

For example, in the aftermath of the 2008 financial crisis, non-farm payroll results were dismal, with job losses reaching historic levels and unemployment rates skyrocketing. However, in recent months, the non-farm payroll report has shown more positive results with steady job growth and declining unemployment rates.

One significant trend in past non-farm payroll results is the impact on the financial markets. Positive non-farm payroll results often lead to a surge in stock markets as investors interpret the data as a sign of economic strength.

Conversely, negative results can cause market volatility and uncertainty as investors worry about the health of the economy. In addition, the Federal Reserve closely monitors non-farm payroll results when making decisions about interest rates and monetary policy, as the data provides valuable insight into the overall health of the economy.

Looking ahead, analysts and policymakers will continue to closely monitor non-farm payroll results to gauge the strength of the labor market and the overall economy. As the US continues to recover from the effects of the COVID-19 pandemic, non-farm payroll data will be crucial in understanding the long-term impact on employment and wage growth.

By analyzing past non-farm payroll results and trends, we can better understand the challenges and opportunities facing the labor market and make informed decisions to support economic growth and stability.

  • The January employment report showed headlines for the key metrics — nonfarm payrolls, private sector payrolls, the unemployment rate, and average hourly earnings — that were stronger than expected (much stronger for the payrolls data).
  • The report had a few quirks, too, namely a notable drop in the average workweek to 34.1 hours from 34.3 hours, benchmark revisions that showed nonfarm payroll employment in November and December combined 126,000 higher than previously reported, and updated population estimates that decreased the estimated size of the civilian non institutional population by 625,000 and the civilian labor force by 299,000 in December.

Non Farm Payroll NFP News Prediction 8th March Key Factors

  • January nonfarm payrolls increased by 353,000. The 3-month average for total nonfarm payrolls increased to 289,000 from 227,000. December nonfarm payrolls revised to 333,000 from 216,000. November nonfarm payrolls revised to 182,000 from 173,000.
  • January private sector payrolls increased by 317,000. December private sector payrolls revised to 278,000 from 164,000. November private sector payrolls revised to 152,000 from 136,000.
  • January unemployment rate was 3.7%, versus 3.7% in December. Persons unemployed for 27 weeks or more accounted for 20.8% of the unemployed versus 19.7% in December. The U6 unemployment rate, which accounts for unemployed and underemployed workers, was 7.2% versus 7.1% in December.
  • January average hourly earnings were up 0.6% versus 0.4% in December. Over the last 12 months, average hourly earnings have risen 4.5%, versus 4.3% for the 12 months ending in December.
  • The average workweek in January was 34.1 hours, versus 34.3 hours in December. Manufacturing workweek was unchanged at 39.8 hours. Factory overtime was dipped 0.1 hour to 2.7 hours.
  • The labor force participation rate held steady at 62.5%.
  • The employment-population ratio increased to 60.2% from 60.1% in December.

Upcoming Non Farm Payroll (NFP) 8th March

The upcoming non-farm payroll report is highly anticipated among economists, investors, and policymakers alike. This report provides crucial insights into the health of the labor market in the United States by detailing the number of jobs added or lost in the previous month, as well as the unemployment rate.

These data points are essential in understanding the overall economic health of the country and can have significant implications for financial markets. Therefore, analysts will carefully scrutinize the upcoming report for any signs of strength or weakness in the labor market.

One key aspect to watch for in the upcoming non-farm payroll report is the rate of job growth. A strong job growth number typically indicates a healthy economy and can lead to increased consumer spending and investment.

On the other hand, a weak job growth number may signal economic troubles and could prompt policymakers to take action to stimulate the economy. Additionally, the unemployment rate will also be closely watched, as a lower unemployment rate suggests a tight labor market and potential inflationary pressures.

Overall, the upcoming non-farm payroll report holds significant importance for understanding the current state of the U.S. economy. By carefully analyzing the data released in this report, economists and investors can gain valuable insights into the health of the labor market and make informed decisions about the future direction of the economy. As the release date approaches, the financial markets will be on edge, eagerly awaiting the results of this key economic indicator.

Non Farm Payroll NFP News Prediction 8th March

As we approach the 8th of March, investors and economists alike are eagerly anticipating the release of the Non Farm Payroll (NFP) report. This report, which is released by the U.S. Bureau of Labor Statistics on the first Friday of each month, provides valuable insights into the state of the U.S. labor market. The NFP report is considered to be a key indicator of economic health and is closely watched by investors as it can have a significant impact on financial markets.

In recent months, the NFP report has shown encouraging signs of growth in the U.S. economy, with strong job gains and a declining unemployment rate. Economists are predicting that this trend will continue into March, with expectations of a solid NFP figure to be released. This positive outlook is based on factors such as strong consumer spending, increased business investments, and overall economic confidence. A strong NFP report would further bolster the case for a healthy U.S. economy and could potentially lead to a rally in the stock market.

However, it is important to note that economic forecasts are never guaranteed and unexpected events can always impact the outcome of the NFP report. Factors such as geopolitical tensions, changes in government policies, or unexpected fluctuations in the labor market could all influence the final NFP figure. As such, it is crucial for investors to stay informed and closely monitor economic data leading up to the release of the NFP report on the 8th of March. Overall, the NFP report is a critical piece of information that provides valuable insights into the state of the U.S. economy and has the potential to impact financial markets around the world.

How I see Non Farm Payroll NFP News Prediction March 8th

The Non-Farm Payroll (NFP) report is a crucial economic indicator that provides valuable insights into the health of the U.S. economy. Released on the first Friday of every month by the Bureau of Labor Statistics, the NFP report measures the number of jobs added or lost in the non-farm sector, excluding agriculture, government, and a few other sectors.

This report is closely watched by investors, economists, and policymakers as it gives a snapshot of the overall employment situation in the country. The NFP report has a significant impact on financial markets, as it can influence monetary policy decisions, interest rates, and investor sentiment.

One of the key impacts of the NFP report is on the stock market. A stronger-than-expected NFP report, indicating robust job growth, can lead to a rise in stock prices as it reflects a healthy economy and increased consumer spending.

On the other hand, a weaker-than-expected report, showing a decrease in job growth or rising unemployment rates, can cause stock prices to fall as it signals economic weakness and potential recession. Investors closely analyze the NFP report to gauge the strength of the economy and make informed decisions regarding their investment portfolios.

Furthermore, the NFP report also affects the foreign exchange market, particularly the value of the U.S. dollar. A positive NFP report often leads to a stronger dollar as it indicates a strong economy and potential interest rate hikes by the Federal Reserve.

On the contrary, a negative NFP report can lead to a weaker dollar as it suggests economic weakness and lower chances of interest rate increases. Traders and currency speculators closely monitor the NFP report and its impact on the dollar’s value to make profitable trading decisions.

In conclusion, the NFP report plays a crucial role in shaping market trends, influencing investor behavior, and providing insights into the overall health of the U.S. economy. In brief, as i see things, the labor market will remain strong.

But because as traders we are fighting to beat the forecast, I am seeing myself selling the USD. This conclusion will be updated, so please visit the website regularly for precisions.

Update on Non Farm Payroll NFP News Prediction March 8th

On investing.com the forecast is 188k and the previous is 353k. With this temporary view from market analysts and economists, we are at the point of saying the upcoming NFP is going to be bullish. But you all have seen the past two NFP news, the forecast got updated a day before the news release.

So, we will keep an eye on the NFP news forecast from inversting.com. If the forecast stays unchanged, we will stay bullish. But if the forecast gets an update, I will update our prediction accordingly. So visit this page sometimes later…

Update No2 on Non Farm Payroll NFP News Prediction March 8th

As we keep an open eye on Friday’s NFP, e have noticed a change of forecast on for this news event on investing.com

From 188k forecast to 190k. But we know for sure is that, the U.S labor market is coolling.

But because our main target is to trade and win, we are looking at beating the forecasts. So we stay bullish on the USD.

Core PCE Price Index News Direction Prediction February 29th

Core PCE Price Index News Direction Prediction February 29th

Core PCE Price Index News Direction Prediction February 29th . The PCE Price Index is a crucial measure in determining inflation levels and understanding the overall health of an economy. It provides insights into the purchasing power of consumers and helps policymakers make informed decisions regarding monetary policy and economic stability.

Additionally, the PCE Price Index is used by firms and investors to predict inflation and make strategic financial decisions. This index reflects changes in prices of goods and services that are purchased by households, making it a reliable indicator of consumer inflation.

On the other hand, The Core PCE Price Index is a key measure of inflation that focuses on consumer prices while excluding the volatile food and energy components. This index is widely used by central banks, policymakers, and economists as an indicator of underlying inflation trends.

It provides important insights into the overall price levels and helps in assessing the effectiveness of monetary policies in controlling inflation. Furthermore, the Core PCE Price Index is considered to be a more reliable measure of inflation since it removes the impact of temporary price fluctuations in food and energy.

By monitoring the Core PCE Price Index, analysts can get a better understanding of the long-term inflationary pressures in the economy and make informed decisions regarding monetary policy, investment strategies, and forecasting future economic conditions.

In conclusion, the Core PCE Price Index is a crucial metric that provides valuable information about underlying inflation trends and helps in making informed decisions regarding monetary policy and economic forecasting.

“In today’s rapidly changing world, the significance of accurate inflation measures, such as the Core PCE Price Index, cannot be overstated. It serves as a vital tool for policymakers, central banks, and economists to assess the current and future state of inflation and adjust their strategies accordingly.

Additionally, the Core PCE Price Index is particularly relevant for countries like Singapore, where the prices of food and energy items are directly influenced by global commodity market fluctuations and can impact domestic prices.

In Singapore, including these items in the Core PCE Price Index allows policymakers to better understand and address the pass-through of global price changes to domestic prices.” “In today’s rapidly changing world, the significance of accurate inflation measures, such as the Core PCE Price Index, cannot be overstated.

The US Core PCE price index forecast

The US PCE price index is published by the Bureau of Economic Analysis. This is different from the Consumer Price Index, which measures prices in a similar way but places greater weight on the prices consumers actually pay, as opposed to the cost of seller-made goods.

The latter is relevant for macroeconomic analysis because it can be used to make inferences about consumer behavior; if the PCE is rising then consumers might be purchasing less, while if the CPI is rising it is likely consumers are paying more.

There are two types of PCE data: the “current” PCE, which is released on a monthly basis, and “chained” PCE, which is reported with a several-month lag. Chained PCE is the preferred measure because it accounts for changes to the basket consumption in response to changes in relative prices.

Furthermore, the index is “chained” to the value of goods and services prices since 2009, which implies that we should actually interpret the numbers as being in terms of changes, rather than the levels of the index itself.

This is known as the property of “translational invariance” in mathematics, and it makes the series more amenable to estimation using a variety of statistical techniques. So it is the chained PCE that forms the basis of this time series, with the analysis being amended to keep up with new data as it becomes available.

Core PCE Price Index News Direction Prediction February 29th

The main purpose of measuring inflation is to estimate the economy’s economic health. When the inflation is too high, the purchasing power decreases and it could lead to an economic downturn. If the inflation is low, people may delay purchases and the economy will not reach its full potential.

Therefore, it is imperative to use an accurate measure of inflation, so that the Federal Reserve can make good judgments about the interest rates. High core inflation puts pressure on the Federal Reserve to raise interest rates. Likewise, lower core inflation puts pressure on them to lower rates.

Knowing what the core PCE is and how to read its growth is essential in the global economy and in the foreign exchange markets. I will use a combination of fundamental analysis and technical analysis to forecast the movements of the forex pairs. Basic trading theory holds that currencies will rise with high or rising interest rates because higher rates provide better yields for the investors.

On the other hand, as inflation rises, purchasing power decreases. The central bank raises the borrowing rates to keep the inflation in check. Therefore, understanding the US core PCE growth and its significance helped me to understand “when” and “why” the dollar may appreciate and depreciate in the forex markets.

My prediction for the Core PCE Price Index News Direction Prediction February 29th 2024

In the past two months , the US core PCE index has shown neutrality and the PCE year of year was negative of 2.9% from 3.2% previous and the forecast 3%. By analyzing, and keeping an eye on the US economy, we can clearly see that this year the FED surely will give something to the American people.

Speaking less, I assume that the PCE price index of the 29th Feb 2024 is going to be bearish USD based. It will be released under 2.8% forecast for the YoY. And CPE MoM is going to be bullish +0,43%.

Now the question is: what direction is likely to end on the chart? So because I know the MoM is mostly the leader. I will go for a buy no matter what happens or i may stay away and enter the trade in the middle.

Besides the two conflicts, let put in mind that the jobless claims are coming to put some petrol on the fire. Overall i will stay with my decisions.

How To Trade the Fed Interest Rate Decision of 31st January 2024 News Direction

How To Trade the Fed Interest Rate Decision of 31st January 2024 News Direction

How To Trade the Fed Interest Rate Decision of 31st January 2024 News Direction?

The Federal Reserve’s interest rate decision plays a crucial role in shaping the economy and financial markets. When the Federal Reserve adjusts interest rates, it has a ripple effect across various sectors, including borrowing costs for businesses and consumers, investment decisions, inflation levels, and currency exchange rates. 

The impact of the Federal Reserve’s interest rate decision extends beyond the United States and has significant implications for global financial markets. According to Mises and Hayek, the central bank has a great impact on the market interest rate, suggesting that the Federal Reserve’s interest rate decision can influence the overall market interest rates.

  The Federal Reserve’s interest rate decision is closely watched by market participants and investors as it can signal the direction of monetary policy and impact economic conditions. As Romer and Romer demonstrate, the impact of U.S. interest rate movements on the real economy depends on the underlying developments behind these decisions

Interest Rate Decision-Making Process

The Federal Reserve’s interest rate decision-making process involves careful consideration of various factors. These factors include but are not limited to the current state of the economy, inflation levels, employment rates, financial market conditions, and projections of future economic growth. 

Additionally, the Federal Reserve takes into account domestic and international developments that may impact the economy, such as geopolitical tensions or changes in global trade patterns. 

Based on the information provided, it can be inferred that the Federal Reserve’s interest rate decision is influenced by a combination of domestic and international factors. Furthermore, the Federal Reserve’s interest rate decision is not made in isolation. 

It is influenced by discussions and deliberations among members of the Federal Open Market Committee, which consists of the Board of Governors and presidents of regional Federal Reserve Banks. These members analyze economic data, assess risks, and debate potential policy actions before reaching a consensus on the appropriate interest rate decision.

Impact of Federal Reserve Decisions on Economy

The impact of Federal Reserve decisions on the economy can be significant. Changes in interest rates can directly affect borrowing costs for businesses and consumers, influencing investment decisions, consumer spending, and overall economic activity. 

These decisions can also have an indirect impact on asset prices, such as stocks and real estate, as well as the exchange rate. Moreover, the Federal Reserve’s interest rate decision can influence inflation levels by affecting the cost of borrowing and spending, which in turn affects price levels in the economy. 

This paper highlights the importance of stock market returns in driving Federal Reserve interest rate decisions. This finding suggests that the Federal Reserve takes into consideration the potential impact of changes in stock market wealth on households’ consumption when making its policy decisions. The Federal Reserve’s interest rate decision plays a crucial role in shaping the economy.

Federal Reserve Interest Rate Overview 31st January 2024 Forex News Direction

In the US people were excited as there were rumours on the Fed to cut rates this year early 2024. But as I see things (Zama Zama Fx), it is far from reality.

The Us economy is growing and we have seen the last Non Farm Payroll news release on the bullish side, this followed by the unemployment rate which was also positive.

Now came the news release of the Consumer Price Index which was awaited so impatiently by the Fed to finally decide. The CPI came also bullish.

So now as it is the responsibility of the Fed to control the inflation, with all the latest news reports on the bullish, Fed will have no choice but to stand still. I have a feeling that this year 2024 will also end before the Fed finally gives a little cut.

The Federal Reserve pivoted toward reversing the steepest interest-rate hikes in a generation after containing an inflation surge so far without a recession or a significant cost to employment.

Around December 2023, While Chair Jerome Powell said Wednesday policymakers are prepared to resume rate increases should price pressures return, he and his colleagues issued forecasts showing that a series of cuts would be likely next year, this year 2024. 

How To Trade the Fed Interest Rate Decision of 31st January 2024 News Direction

Because there are no rate cuts this year and also there will be no interest rates added, it is always very complicated for forex traders to make a decision. It is often easy when we can clearly interpret Powell’s speeches to the Fed early before trade.

No interest rate added, no cuts, what will be your move? Buy or sell? So for this situation all that matters is to be on the side of the chart. What I mean is, if the indicators on the chart go bullish, we will have to know before and place our order.

So this is a strategy that I always do, when I find myself in a situation where I do not have a choice. This strategy will work for any other news release. But I always recommend you go for high impact news so that you are greatly profitable. 

For this strategy, you will need a good broker who offers high leverage. But because it;s hard to find good brokers these days, do this instead. With any broker you may have, simply use the AUX USD currency pair to trade the fed interest rate decision news release.

You can also use the AUX USD currency pair to trade other news. Why use Gold instead of other currency pairs such as the USDJPY? Simply because trading Gold gives you value for money and you will notice this after trading if you have never used this currency pair before.

XAU/USD is a currency pair. It represents the relative value of gold (XAU) against the US dollar (USD) in the forex market. When trading XAU/USD, traders are speculating on the price movements of this currency pair, not the physical ownership of gold.

So how to trade the fed interest rate decision of this month? When you open your trading platform. Wait a minute before the news is released. Then place two trades within two different trading accounts.

That’s right. You will need two different accounts for this strategy. You can use the same broker and open two accounts. Beware that many brokers use to limit the leverage usage when it is time for news release. So what you can do for this situation, is to open trade with little lot sizes but too many trades in the 1% usability as per your balance.

If you have any question regarding this strategy, you can find more in this book or follow me on YouTube for more explanations.

Zama Zama Fx, Fundamental Trader and Economic News Analyst