Hello subscribers! Welcome to the 4th edition of the Techemynt fortnightly newsletter.
This week investors across Crypto, forex and equities all have their focus firmly fixed on the United States Federal Reserve. The US Central Bank holds its latest policy meeting this Wednesday and will then reveal a major interest rate decision.
The Fed is expected to raise rates by 75 basis points (bps) but given surging inflation, strong jobs and consumer data, they may be tempted to raise them higher. A 1% interest rate hike would shock markets and affect the trading of the NZD/USD pair.
After its June meeting, the Federal Reserve increased the funds’ rate by 75 bps to push the rate in the US 1.5%-1.75%. This was higher than the 50bps rise initially expected. Following the rates hike – the USD to NZD rate jumped from 1.58 to 1.61, with markets likely backing the Fed’s stronger actions.
NZDS holders trading via USDC pairs, look out for price action around the days of the Fed announcement.