The traders are eying the FOMC Meeting. The result and outcomes of FOMC are in spotlight. this meeting will influence the trading trend of different currencies in Forex market. Thus the flow of trade was a bit slow. However the anticipation of FOMC Meeting has spiked up the price of safe-haven. As expected, USD gained as compared to its major counter-currencies. While on the other hand, this wait has weakened some currencies as well such as AUD and NZD. Both the currencies are treated as risk-sensitive currencies. The rising journey of Gold seems to extend as there was an increase in its price. Right now all are eyeing the FOMC. The near term future of USD depends on it. The actions and statements of the Federal Reserve play a vital role in stirring the trade of safe-haven. It will also affect the volatility of the Forex Market.
Federal Reserve and Volatility:
The latest comment of Mr. Powell regarding the Central Bank indicates an unchanged monetary policy. As far as the increase in the interest is concerned, the current scenario hints no immediate change. In fact, it is not likely to happen before the end of 2022. Obviously such circumstances will likely to spike up the price of USD. Therefore you can predict a bullish trading trend of safe-haven in the near-term. Thus you can say that the decisions of this meeting will induce volatility in Forex market. However if Federal Reserve does not alter its plan and decide according to its script then a higher trading trend of USD will not happen.
Trading Trend of USD:
The price of USD is moving above the lines of 91.43. The smooth recovery of safe-haven continues at stable pace. it is eyeing to test the value of 92.73 which is the Moving average of 200 trading days. Alternatively if it moves backward then it could result in a trade reversal as it will reflect the selling pressure on USD imposed by the traders.