The FOMC meeting is the highlight of the week. Will the Fed worry about a potential recession to start tightening monetary policy aggressively? Where will the EURUSD go? Let us discuss the Forex outlook and make up a trading plan.
Weekly US dollar fundamental forecast
If hawkish sentiments dominate in the ECB’s Governing Council, traditionally dovish, what can be said about the Fed? According to the source of Financial Times familiar with the matter, concerns about accelerating inflation at the ECB March meeting prevailed over problems, including the conflict in Ukraine, uncertainty, and worries about GDP downturn. Conversely, the US economy is robust, with almost 8% inflation, labour market is strong, and the USA is far from the conflict zone in Eastern Europe. Why shouldn’t the FOMC act aggressively?
The FOMC meeting is the highlight of the week. Will the Fed worry about a potential recession to start tightening monetary policy aggressively? Where will the EURUSD go? Let us discuss the Forex outlook and make up a trading plan.
Weekly US dollar fundamental forecast
If hawkish sentiments dominate in the ECB’s Governing Council, traditionally dovish, what can be said about the Fed? According to the source of Financial Times familiar with the matter, concerns about accelerating inflation at the ECB March meeting prevailed over problems, including the conflict in Ukraine, uncertainty, and worries about GDP downturn. Conversely, the US economy is robust, with almost 8% inflation, labour market is strong, and the USA is far from the conflict zone in Eastern Europe. Why shouldn’t the FOMC act aggressively?
Weekly EURUSD trading plan
In my opinion, if the conflict in Ukraine ends unexpectedly, the EURUSD could return to level 1.13. However, this does not guarantee the euro downtrend to reverse. The euro-area economy has been badly damaged and will not recover soon. As long as the war goes on, it will be relevant to sell the euro against the dollar, also when the price breaks out the support 1.0885-1.089.
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