empty
InstaForex - Official partner of Dragon Racing
InstaForex - Official partner of Dragon Racing
This section is designed for those who are just starting their trading journey. InstaForex educational and analytical materials will meet your training needs. Our experts' recommendations will make your first steps to trading success simple and clear.
Start as Beginner
How to start trading
Useful information
Training and recordings
InstaForex innovative services are an essential element of productive investment. We strive to provide our clients with advanced technical capabilities and make their trading routine comfortable as we are recognized as the best broker in this regard.
Become Investor
PAMM System
ForexCopy System
Passive investments
Partnership with InstaForex is beneficial and top-tier. Join our affiliate programs and enjoy bonuses, partner rewards, and the possibility to travel with the team of the world-renowned brand.
Become Partner
Main Page
Partner Area
Advantages for Affiliates
Registration
This section contains the most lucrative offers from InstaForex. Receive bonuses when topping up an account, compete with other traders, and get real prizes even when trading in a demo account.
All Promo Campaigns
Bonuses
Contests
Events
Holidays with InstaForex are not only pleasant but also useful. We offer a one-stop portal, numerous forums, and corporate blogs, where traders can exchange experiences and become successfully integrated into the Forex community.
Full details
Forums
We are in social networks
Forex humour
Forex Portal
InstaForex is an international brand created in 2007. The company provides services for online FX trading and is recognized as one of the world's leading brokers. We have won the trust of more than 7,000,000 retail traders, who have already appreciated our reliability and focus on innovations.
Learn More
History
Why Choose Us
InstaSport
Regulation
Company News
Awards
InstaForex Stars
InstaForex Offline
Key documents
Social Responsibility
19.03.2025 09:27 AM
How Might Markets React After the Fed Meeting? (Expecting a Sharp Decline in GBP/USD and a Drop in #SPX)
Open trading account Open demo account

Today, the market will focus on the Federal Reserve's final decision on monetary policy. It is expected to bring nothing new, so the main topic will remain the same as in recent months—the impact of Trump's policies on the U.S. economy.

While the situation with interest rates in the U.S. seems relatively straightforward, investors will be interested in the Fed's quarterly projections on interest rates, GDP, unemployment, and inflation. Based on the latest data, the Fed may raise its 2025 inflation forecast, which was previously set at 2.5% in December last year. The plan for two interest rate cuts this year is also expected to remain in place. However, it should be noted that the Fed, including its members and Chairman Jerome Powell, has consistently advocated a patient approach for several months—in other words, simply observing how events unfold.

As expected, the two-day rebound in U.S. stock markets has ended, and yesterday's decline in major stock indices has yet to be reversed. Investors are waiting for the Fed's forecasts, which could have a short-term impact on market sentiment. However, judging by the continued rise in gold prices—as a safe-haven asset—the Fed's expectations for key macroeconomic indicators such as GDP, inflation, employment, and interest rates are unlikely to differ significantly from previous ones.

How Might Markets React to the Fed's Monetary Policy Decision?

I believe the reaction will not be particularly optimistic. I stand by my position based on yesterday's forecast. The U.S. stock market, which remains under significant pressure from the risk of an economic recession, will, at best, consolidate near current levels in key indices.

U.S. Dollar:

The dollar previously benefited significantly from rising inflation in the U.S. and the slowdown of the rate-cutting cycle. However, as soon as recession risks appeared on the horizon—exacerbated by uncertainty surrounding the outcome of the trade war—it came under strong pressure. It will likely remain above the 103.00 mark on the ICE index, but expecting much more upside is probably unrealistic.

Cryptocurrency Market:

A similar situation will likely be observed in the crypto market. One key reason is the ongoing uncertainty regarding the future of the U.S. economy. On the other hand, Donald Trump's clear intention to strengthen the dollar's position globally will negatively affect demand for tokens. His statements in support of cryptocurrencies remain vague at best. I still believe that economic policy will pressure interest in tokens, leading to a significant decline in their value over time.

Gold:

Gold's price has already nearly reached the target level of 3045.00. I believe that worsening market sentiment and the Middle East and Ukraine crises will continue to support demand for this safe-haven asset for some time.

Daily Forecast:

This image is no longer relevant

This image is no longer relevant

GBP/USD

The pair has risen significantly recently due to intense pressure on the dollar. However, it is losing momentum for further growth due to a lack of new supportive factors. From a technical standpoint, there is a divergence between the price chart and the RSI and MACD indicators. A drop below 1.2940 could lead to a significant decline to the 1.2850 level.

#SPX

The CFD contract for the S&P 500 futures is above 5600.00. If Powell's speech following the Fed meeting does not contain any market-supporting signals, the futures contract could decline further, reaching its first target level at 5521.00 and then the second at 5452.50.

Pati Gani,
Analytical expert of InstaForex
© 2007-2025
Select timeframe
5
min
15
min
30
min
1
hour
4
hours
1
day
1
week
Earn on cryptocurrency rate changes with InstaForex
Download MetaTrader 4 and open your first trade
All Analytics
Fundamental analysis
Euro Hits the Ceiling Bets are now closed, ladies and gentlemen! Many have already played out. The EUR/USD's hesitation to rise following the Bundestag's approval of Friedrich Merz's fiscal stimulus package indicates that this
Marek Petkovich
00:43 2025-03-20 +02:00
1240
Forecast
USD/JPY: Simple Trading Tips for Beginner Traders on March 19th (U.S. Session) The test of the 149.59 level coincided with the MACD indicator just starting to move downward from the zero mark, confirming a valid entry point for selling the US dollar
Jakub Novak
19:13 2025-03-19 +02:00
1510
Breaking Forecast Trading Plan Cryptocurrencies USD/RUB Russian Economy Video Analysis
Trading Instruments
EURUSD GBPUSD USDCHF USDCAD USDJPY AUDUSD EURGBP EURJPY NZDUSD EURNZD Silver Gold #CL #USDX COVID-19 Bitcoin
  • Grand Choice
    Contest by
    InstaForex
    InstaForex always strives to help you
    fulfill your biggest dreams.
    JOIN CONTEST

Recommended Stories

Euro Hits the Ceiling

Bets are now closed, ladies and gentlemen! Many have already played out. The EUR/USD's hesitation to rise following the Bundestag's approval of Friedrich Merz's fiscal stimulus package indicates that this
Marek Petkovich 23:43 2025-03-19 UTC+2

USD/CAD. Analysis and Forecast

The USD/CAD pair is showing signs of recovery for the second consecutive day after a recent decline, rebounding from a two-week low around 1.4260. Spot prices have climbed above
Irina Yanina 10:16 2025-03-19 UTC+2

Stock market pays dear cost for Washington's rhetoric

The boomerang effect: what goes around, comes around The US is retreating from globalization, and it is only a matter of time before it faces the consequences. According
Marek Petkovich 09:51 2025-03-19 UTC+2

XAU/USD. Analysis and Forecast

Gold has halted its upward movement as it attempts to consolidate at new all-time highs around $3,045, with bulls taking a pause ahead of the FOMC meeting results. The Federal
Irina Yanina 09:41 2025-03-19 UTC+2

What to Pay Attention to on March 19? A Breakdown of Fundamental Events for Beginners

There are few macroeconomic events scheduled for Wednesday, which suggests that volatility for both currency pairs may remain low until the evening. The dollar continues to show signs of weakness
Paolo Greco 06:44 2025-03-19 UTC+2

GBP/USD Pair Overview – March 19: The Inertial Growth Continues

On Tuesday, the GBP/USD currency pair did not attempt to correct once again. There was no macroeconomic background that day, but it is difficult to determine what is currently better
Paolo Greco 02:34 2025-03-19 UTC+2

EUR/USD Pair Overview – March 19: What Will the Fed Meeting Change?

The EUR/USD currency pair continued to trade upward on Tuesday. Although the upward movement is weakening, the euro remains strong while the US dollar keeps falling. This is happening despite
Paolo Greco 02:34 2025-03-19 UTC+2

The Euro Fires a Bazooka

The last time Germany armed itself was in the 1930s, it led to World War II. Today, German militarization is welcomed. According to Bloomberg estimates, fiscal stimulus packages worth around
Marek Petkovich 23:46 2025-03-18 UTC+2

WTI Gains Support from Rising Geopolitical Tensions in the Middle East

For the third consecutive day, West Texas Intermediate (WTI) crude oil is attracting buyers. Currently, the commodity is trading slightly above the key psychological level of $68.00, having gained over
Irina Yanina 18:24 2025-03-18 UTC+2

Top analytics

Relevance up to 07:00 UTC--4
USD/JPY: Simple Trading Tips for Beginner Traders on March 19th (U.S. Session)
19:13 2025-03-19
Forecast
Relevance up to 07:00 UTC--4
GBP/USD: Simple Trading Tips for Beginner Traders on March 19th (U.S. Session)
19:07 2025-03-19
Forecast
Relevance up to 07:00 UTC--4
EUR/USD: Simple Trading Tips for Beginner Traders on March 19th (U.S. Session)
19:05 2025-03-19
Forecast
Relevance up to 09:00 2025-03-21 UTC--4
Euro Hits the Ceiling
00:43 2025-03-20
Fundamental analysis
Relevance up to 09:00 UTC--4
EUR/JPY: Mixed Outcomes of the Bank of Japan's March Meeting and Germany's "Debt Brake" Reform
00:43 2025-03-20
Fundamental analysis
Can't speak right now?
Ask your question in the chat.
Widget callback
Callback widget
 

Dear visitor,

Your IP address shows that you are currently located in the USA. If you are a resident of the United States, you are prohibited from using the services of InstaFintech Group including online trading, online transfers, deposit/withdrawal of funds, etc.

If you think you are seeing this message by mistake and your location is not the US, kindly proceed to the website. Otherwise, you must leave the website in order to comply with government restrictions.

Why does your IP address show your location as the USA?

  • - you are using a VPN provided by a hosting company based in the United States;
  • - your IP does not have proper WHOIS records;
  • - an error occurred in the WHOIS geolocation database.

Please confirm whether you are a US resident or not by clicking the relevant button below. If you choose the wrong option, being a US resident, you will not be able to open an account with InstaForex anyway.

We are sorry for any inconvenience caused by this message.