Federal rate decision is around the corner On June 12, 2024, at 18:00 GMT, the Federal Reserve shall announce its decision on interest rates. The Fed would keep the benchmark interest rate within the range of 5.25% to 5.50%, according to market expectations. But with most economists expecting the Federal Reserve to begin easing rates later this year, the continuing stickiness of a higher-than-desired level of inflation has kept policy-makers on a more cautious route. And whatever the Fed does—leave rates alone or lower them—will have enormous implications for the financial markets and investors around the globe.
What does it mean to investors and traders?The Fed’s interest rate decision means a lot to investors and traders. The impact will reverberate through currencies, commodities, stocks, and many other financial instruments, with potentially strong price movements and increased market volatility. With increased market activity comes increased risk, it also opens the door to
short-term profit potential.
Seize the opportunity with CFD tradingBut how can investors grasp this short-term opportunity? That’s where CFD trading comes into play. With the ability to take both long and short positions, investors can harness the power of market movements, regardless of their direction, which means profit from rising or falling markets. This flexibility is key for navigating the financial landscape, especially with all the ups and downs caused by the Federal Reserve. Say the Fed's decision causes the U.S. dollar to get stronger by 2% against the euro. As an investor, you could open a short position on the EUR/USD with 10:1 leverage using a $10,000 account. That means you'd have an exposure of $100,000. Now, if you manage to capture that 2% decline, it could lead to a $2,000 profit which means a 20% return on the capital.
Leverage, when utilized with caution, can be a powerful tool in the hands of skilled traders.
JRFX offers a range of leverage options up to 1000, enabling traders to tailor their positions according to their risk appetite and investment objectives. However, it should be used properly because it works both ways. It magnifies gains but losses as well.
As an online CFD broker backed by over 13 years of industry experience,
JRFX stands as a trusted partner, empowering traders with the necessary tools and resources to trade with precision and confidence, especially in the phase of the Fed's interest rate decision. As a regulated broker under the oversight of reputable bodies such as the
BVIFSC and
FCA, it prioritizes transparency and adherence to the highest industry standards.
With a minimum deposit of just $1, this broker caters to traders of all levels, from newbies to veterans, ensuring they can capitalize on the opportunities around the Fed's announcement. The competitive spreads and zero commission fees ensure they maximize their potential returns without being held back by excessive costs, allowing them to fully benefit from the market movements.
Trading carries inherent risks, and losses can potentially exceed deposits. It is imperative for individuals to thoroughly understand the associated risks and seek independent advice if necessary.
