Market Overview

18 September 2015

WEEKLY REVIEW: The Fed kept its monetary policy unchanged, but markets are likely to remain volatile

The Fed released its interest rate decision yesterday. The Fed kept its monetary policy unchanged, saying that the slowdown in the global economy and low inflation expectations were main reasons for this decision.

FOMC members voted 9-1 to keep interest rates unchanged. Only Richmond Fed President Jeffrey Lacker voted to raise interest rate by 0.25%.

GDP for 2016 and 2017 were downgraded.

The Fed said that it will start raising its interest rates if the U.S. economy will stay on track to reach "longer-run goals of maximum employment and inflation of 2 percent".

If the Fed starts raising its interest rates this year, it is likely that it will be at the December monetary meeting, despite the Fed Chairwoman Janet Yellen's comment that the interest rate hike in October is possible. The statement by the Fed was too dovish to start hiking interest rates soon. Many market participants do not expect the interest rate hike this year.

The markets are likely to remain volatile despite the small likelihood for the interest rate hike in October. Market participants will monitor closely every major economic report from the U.S. The guessing game is likely to continue.

Greece should turn again in focus at the beginning of the next week. The election will be held on Sunday. It will need time to form a government. The implementation of the bailout obligations is likely to suffer.

It is likely that the currency pair EURUSD will test the level at $1.1500, maybe even the level of $1.1600, if the U.S. economic data will negative and there will be no negative news from Greece and the Eurozone as whole.

If the U.S. economic data is positive and in case of the negative news from the Eurozone, the currency pair EURUSD may test the level of $1.1300 or $1.1213 (the low of 1.1213).

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

Open Forex Demo Account
I understand and accept the Privacy Policy and agree that my name and contact details can be used by TeleTrade to contact me about the information I have selected.
23 International Awards
Have a question?

We are ready to assist you in every step of your trading experience
by providing 24/5 multilingual customer support.

Follow us

Risk Warning: Trading Forex and CFDs on margin carries a high level of risk and may not be suitable for all investors. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. Prior to trading, you should take into consideration your level of experience and financial situation. TeleTrade strives to provide you with all the necessary information and protective measures, but, if the risks seem still unclear to you, please seek independent advice.

© 2011-2021 Teletrade-DJ International Consulting Ltd

Teletrade-DJ International Consulting Ltd is registered as a Cyprus Investment Firm (CIF) under registration number HE272810 and is licensed by the Cyprus Securities and Exchange Commission (CySEC) under license number 158/11.

The company operates in accordance with Markets in Financial Instruments Directive (MiFID).

The content on this website is for information purposes only. All the services and information provided have been obtained from sources deemed to be reliable. Telerade-DJ International Consulting Ltd ("TeleTrade") and/or any third-party information providers provide the services and information without warranty of any kind. By using this information and services you agree that under no circumstances shall TeleTrade have any liability to any person or entity for any loss or damage in whole or part caused by reliance on such information and services.

TeleTrade cooperates exclusively with regulated financial institutions for the safekeeping of clients' funds. Please see the entire list of banks and payment service providers entrusted with the handling of clients' funds.

Please read our full Terms of Use.

To maximise our visitors' browsing experience, TeleTrade uses cookies in our web services. By continuing to browse this site you agree to our use of cookies.

Telerade-DJ International Consulting Ltd currently provides its services on a cross-border basis, within EEA states (except Belgium) under the MiFID passporting regime, and in selected 3rd countries. TeleTrade does not provide its services to residents or nationals of the USA.

Material posted here is solely for information purposes and reliance on this may lead to losses. Past performances are not a reliable indicator of future results. Please read our full disclaimer.

CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.42% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.