Market sentiment towards the US Dollar worsened significantly after the Federal Reserve meeting on January 27. FOMC left interest rates unchanged and softened the overall rhetoric, pointing to increased global and internal risks. As a result, expectations for a Fed’s hike in March slipped to just 15%. How long will the USD selling last? To find the answer we need to monitor the upcoming economic events, as the Fed remains data-dependent.
Calendar for the new week is full of potentially market-moving events. Watch the PCE index and consumer spending data on Monday. FOMC voting members Fisher and George will deliver their speeches on Monday and Tuesday, respectively. These two policymakers have traditionally been hawkish – we will see whether they changed the views in the worsened economic conditions.
Apart from that, watch a block of PMI indices from Monday to Wednesday. On Friday, the market will focus on the labor market figures. Do not forget to leave your NFP forecasts on FX BAZOOKA website!