The next FOMC Interest Decision and Press Conference will be held on 14-15 Jun 2022.
As you can see on the market yesterday, US CPI data for May was unexpectedly rise to 8.6% year over year while the market consensus is only 8.3%. There is no obvious sign that US inflation is under control although multiple rate hikes of 0.5% for the next few FOMC meetings are the market consensus at the moment. There are also some analysts that are predicting CPI next month might be as high as 9%.
A higher rate hike will potentially be considered by FOMC in this upcoming meeting and more information will be available after 15 Jun. This will make EURUSD very volatile after the announcement.
In addition to that, worsen than expected retail sales and some big tech companies decided to slow down or stop hiring are signs of economic slowdown, but then it does not show signs of slowdown inflation so far. The recent CPI data also reduce the market’s confidence in US Federal Reserve whether they have the ability and capability to control inflation.
On the Europe side, European Central Bank announced plans to halt its massive bond-buying program and increase the interest rate by 25 basis points in July. They also committed to a further rate rise at its September meeting.
At this moment, both sides have some factors that might make their currency bullish.
Recommendation
With this outlook, as usual, and to be on the safe side, we strongly recommend all Ophiuchus and Limitless EA users to schedule to stop trading from 14 June 2022 till 17 June 2022 to avoid a strong market move due to this announcement. You can use the stop trading period feature in the EA to do that. You can also decide to extend the stop trading period (eg, till 19 June and only start trade on the week after next) if you would like.
Disclaimer – Please note that Limitless Trading is not liable for our recommendation and is not responsible for any loss or profit caused by this recommendation. You should assess your personal circumstances and perform your own research to make decisions for your trading.