The next FOMC Interest Decision and Press Conference will be held on 3-4 May 2022.
The market continues to be very volatile throughout the whole of April 2022. Not only disappointed earning releases from giant companies like Netflix and Amazon cause the US stock market to drop significantly but Russia’s decision to stop their gas supply to Europe has caused EURUSD to drop to a level that is lower than the covid crash in Mar 2020. The low during the covid crash is 1.0637 and EURUSD closed yesterday at 1.0543.
A 0.5% rate hike on the May FOMC interest decision is priced in the current market while there are analysts that have started to project a 0.75% rate hike in the next two FOMC meetings. Any indication in May’s Fed Meeting minutes that increase the probability of the projections will likely make the USD bullish.
On the other hand, a surprise interest raised by Sweden two days ago also signaled a lot of the European Central Bank might raise interest higher than what they have projected.
The Ukraine-Russia war continues to affect the market. Pro-longed gas supply disruption might hurt Europe’s economy significantly and hence cause EUR to be bearish. However, any tension reduction between Europe and Russia will make EUR bullish too.
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 3 May 2022 till 5 May 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 7 May 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.