How will the markets respond to Fed projections? (Video)

As this is the last big week in data before the markets wind down for the festive period. We have a few central bank announcements. The Fed announcement tonight is the event that has Craig, Senior Market Analyst from OANDA, most interested. It is the biggest of Central Bank announcements according to Craig, as something is actually going to happen. He says that the rate hike is practically already priced in. We may see some volatility around it however.

Not only will we see a Rate Hike but we will get economic projections for 2018 also. Are we going to see more rate hikes? What about inflation? growth? Will expectations drop lower? We will also hear from Janet Yellen. How are the markets going to interpret all of this? How will the markets react?

Craig Erlam also discussed the effect of the change of Fed Chair in February. He says there is lot to take from tonight. He thinks we will see volatility and it will be interesting how markets respond.

Also touched upon is the tax reforms and any effect they could have on the market. Craig thinks if we see tax reforms we could see three or four rate hikes next year. Markets are currently pricing in one or two.

Discussed further is Bitcoin. Will it crash? It is a bubble? Craig shares his view on the cryptocurrency.

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This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Craig Erlam

Craig Erlam

Senior Currency Analyst at OANDA
Based in London, England, Craig Erlam joined OANDA in 2015 as a Market Analyst. With more than five years' experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while conducting macroeconomic commentary. He has been published by The Financial Times, Reuters, the Wall Street Journal and The Telegraph, and he also appears regularly as a guest commentator on networks including Sky News, Bloomberg, CNBC and BBC. Craig holds a full membership to the Society of Technical Analysts and he is recognized as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam

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