LATEST STOCK MARKET NEWS

Here we are, the last FOMC meeting of the year. According to the latest Bloomberg survey, the Federal Reserve is expected to lift short-term interest rates by another 25bps - which would bring the target band up to 2.25%-2.50% - to the highest level since March 2008. The chances that Jerome Powell would stand idle today are very thin as the Fed had already widely communicate on a December hike. Backpedalling would send a terrible signal to investors as it would suggest that the US economy could not withstand another rate hike.

Therefore, we expect that the Federal Reserve would come with a dovish hike. During the press conference, Jerome Powell would provide little guidance and emphasize the need for optionality. In other words, the Fed would not commit to any further tightening move and stick to a data-dependent approach.

from MQL5: Traders' Blogs http://bit.ly/2CrezqF