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The USD Index will likely break higher or lower depending on the outcome of the upcoming Federal Reserve Funds Rate decision. What factors could determine which way the USD Index goes?

Watch the video to learn more…

USD Index Key Levels Ahead Of FOMC

Investors and traders alike are on the edge of their seats as the Federal Open Market Committee (FOMC) prepares to announce their latest decision on interest rates. The FOMC, which sets the benchmark interest rate for the United States, is widely expected to hike rates by 25 basis points from 4.50% to 4.75%. However, the key question on everyone’s mind is what the Fed’s stance on future rate hikes will be.

The labour market remains strong, with unemployment rates remaining low, which has put pressure on inflation rates. Inflation has been a hot topic for the Fed, as they aim to balance inflationary pressures with monetary policy. If the Fed signals that they are open to raising interest rates further, above the current 5.25% target, the USD could turn bullish. This could result in the price of the USD Index targeting the key level of $105.50.

USD Index Forex Signals Currency Strength

On the other hand, if the Fed believes that inflation is under control and sees no need to hike rates beyond 5.25%, the USD could remain bearish. This could result in a move towards the key $99.00 levels.

In conclusion, the USD Index is at a key level ahead of the FOMC announcement, and the outcome of the announcement will have a significant impact on the direction of the US dollar in the near-term. Investors will be closely monitoring the outcome of the FOMC decision and press conference to determine the future trajectory of the USD Index.

Have you watched our AUDUSD analysis? You can see it here

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