The Swiss franc has been the winner of the week gaining 1% against majors with no specific economic events on the background. The commodity currencies AUD and NZD were the losers of the week retreating 0.92% and 0.76% respectively. The trading week has been rather mixed and either bulls nor bears could extend their gains.
The FOMC meeting was the main event of the week but it actually disappointed traders as there was no new information for the market. Here are takeaways from the FOMC meeting:
- The Fed's statement didn't change much
- There were no discussions about starting tapering of the QE program that can signal the beginning of the tightening cycle.
- The market is now expected the tapering to start early in 2022 and finish by the end of the year
- According to Powell, the Delta variant is not a concern for the Fed
The September meeting will be important as it might signals about tapering plans. In addition, the meeting will include economic projections and "dot plots" of the future interest rates. Before September there is the Fed's annual economic policy symposium that will be held in Jackson Hole on August 26-28 and additional comments can be provided by Powell during the press conference.