At the beginning of a very important week, EURUSD is going down. The major currency pair is falling on Monday. The current quote for the instrument is 1.1317. So, one of the most important weeks for financial markets has started. The key highlight is the January meeting of the US Federal Reserve System and market players are already saving their strengths to respond to the things they are expecting so much.
First of all, they are awfully interested in whether the Fed decides to raise the benchmark rate in March or wait for more signals. As a rule, the American regulator holds to the stance of announcing its decisions about future activities as soon as possible, that’s why the entire financial world is anticipating what the regulator is going to say this week. Apart from that, market players want to hear confirmation that the QE programme will be closed in March.
There are at least two open issues that are extremely interesting for investors and will surely influence global currencies. The first of them is how many rate hikes there will be in 2022. Average market expectations say four, but there are some aggressive and ambitious opinions that imply seven. And the second aspect is the Fed’s balance reduction. It is believed to be April-June, but more specific information wouldn’t hurt. By the way, the US stock market is already responding to the possibility of the rate hike and the balance reduction. Overall, the meeting is expected to be very interesting.
