#FedRateWatch
Forex Currency Market** | Interest is the primary driver of the desire to buy or sell the US dollar against other currencies. |
| **Crypto and Gold** | Forecasting the direction of alternative assets and safe havens, which are directly affected by the strength of the dollar and the cost of liquidity. |
| **Risk Management** | Avoid random trading or going against the direction of strong market expectations before Federal meetings. |
### **How to Read Instrument Data**
1. **Select the Meeting Date:** The tool allows you to review all upcoming meeting dates for the current and future years.
2. **Interest Rate Range (Target Rate Range):** The current interest rate level is shown divided into options (e.g., hold steady, cut by 25 basis points, or cut by 50 basis points).
3. **Probabilities:** It shows the likelihood of each scenario; for example, a 70% probability of cutting rates by 25 basis points versus a 30% probability of holding them steady.
### **The Impact of Economic Data on FedWatch**
The tool’s readings change sharply after the release of major US economic indicators, especially:
* **Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE):** to gauge inflation levels.
* **Non-Farm Payrolls (NFP) and the Unemployment Rate:** to assess the health of the labor market.
* **Statements by Federal Board members:** clear or implicit messages about monetary policy direction.
Forex Currency Market** | Interest is the primary driver of the desire to buy or sell the US dollar against other currencies. |
| **Crypto and Gold** | Forecasting the direction of alternative assets and safe havens, which are directly affected by the strength of the dollar and the cost of liquidity. |
| **Risk Management** | Avoid random trading or going against the direction of strong market expectations before Federal meetings. |
### **How to Read Instrument Data**
1. **Select the Meeting Date:** The tool allows you to review all upcoming meeting dates for the current and future years.
2. **Interest Rate Range (Target Rate Range):** The current interest rate level is shown divided into options (e.g., hold steady, cut by 25 basis points, or cut by 50 basis points).
3. **Probabilities:** It shows the likelihood of each scenario; for example, a 70% probability of cutting rates by 25 basis points versus a 30% probability of holding them steady.
### **The Impact of Economic Data on FedWatch**
The tool’s readings change sharply after the release of major US economic indicators, especially:
* **Consumer Price Index (CPI) and Personal Consumption Expenditures (PCE):** to gauge inflation levels.
* **Non-Farm Payrolls (NFP) and the Unemployment Rate:** to assess the health of the labor market.
* **Statements by Federal Board members:** clear or implicit messages about monetary policy direction.