Monitor US Federal Funds Rate decisions, a primary driver of currency valuation and market trends.
Short-term interest rates play a crucial role in determining currency values. Traders often analyze various indicators primarily to forecast potential changes in these rates. The market generally anticipates the rate decision, which often makes it less significant compared to the FOMC Statement that emphasizes future directions.
What it Measures
The interest rate at which depository institutions lend their excess balances held at the Federal Reserve to other institutions on an overnight basis.
Usual Effect
If the 'Actual' rate exceeds the 'Forecast', it is typically positive for the currency.
Source & Frequency
Federal Reserve (latest release) - https://www.federalreserve.gov/ • This event occurs eight times each year.
How Data is Derived
FOMC members vote on where to set the target rate. The individual votes are published in the FOMC statement
Also Known As
Interest Rates, Fed Funds Rate
Acronym
Federal Open Market Committee (FOMC)