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This week all eyes turn to the Federal Reserve’s upcoming rate decision, policy statement and press conference.
A lot has changed in a very short space of time with the unfortunate outbreak and escalation of the Coronavirus. With confirmed cases now sitting at 156K (at the time of writing), the situation remains a major concern for financial markets.
Despite the Fed’s 50-basis point emergency rate cut, the markets are still expecting a lot more from the Fed to appease markets that has seen tremendous volatility and double-digit losses.
Currently, markets are pricing in a 100% probability for a 75-basis point rate cut and pricing in a 70% chance of a 100-basis point cut. With such high expectations on the Fed, the possibility of the Fed disappointing expectations is a growing concern.
This week ahead video will help you prepare for this week’s upcoming event and provide insights into how you could possibly trade it as well.
Highlights of the video:
00:30 – Baseline context for the currency
01:42 – Baseline expectations for the upcoming risk event
03:17 – Possible sentiment shifts
05:44 – Possible currency pairs to consider