fomc interest rate 8pm wednesday 28 junary 2026

• ·       The upcoming FOMC (Federal Open Market Committee) meeting is expected to play a major role in shaping the next move for both the crypto and forex markets. Traders and investors across the globe are closely watching this event, as Federal Reserve decisions often trigger strong price reactions in financial markets.

  ·       In this article, we’ll break down what the FOMC meeting is, why it matters, and how it can impact crypto and forex trading in the short and long term.

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  ·       What Is the FOMC and Why Is It Important?

  ·       The Federal Open Market Committee (FOMC) is a key policy-making body of the U.S. Federal Reserve. It is responsible for deciding interest rates and guiding overall monetary policy.

  ·       These decisions directly influence:

  ·       The value of the U.S. dollar

  ·       Inflation expectations

  ·       Investor risk appetite

  ·       Liquidity in global markets

  ·       Because the U.S. dollar is the world’s reserve currency, any change in Federal Reserve policy has a ripple effect across forex pairs, cryptocurrencies, stocks, and commodities.

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  ·       Interest Rate Outlook – What Markets Are Expecting

  ·       According to current market expectations, the Federal Reserve is likely to hold interest rates steady in the upcoming February meeting.

  ·       Current interest rate range: 3.50% – 3.75%

  ·       Expected decision: No rate hike or cut

  ·       However, the real impact often comes from the statement and forward guidance, not just the rate decision itself. Even if rates remain unchanged, subtle wording changes can move markets aggressively.

  ·       📌 Interest rate decision time: 8:00 PM (local market reaction expected within minutes)

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  ·       Why Forward Guidance Matters More Than the Rate Decision

  ·       Forward guidance refers to how the Federal Reserve hints about future policy actions. Traders analyze every word for clues about:

  ·       Possible rate cuts or hikes

  ·       Inflation outlook

  ·       Economic strength or weakness

  ·       For example:

  ·       A hawkish tone (tight policy) usually strengthens the USD and pressures crypto

  ·       A dovish tone (looser policy) can weaken the USD and support risk assets like Bitcoin

  ·       This is why markets can move sharply even when rates remain unchanged.

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  ·       High Volatility Warning for Traders

  ·       FOMC announcements are known for creating extreme volatility.

  ·       During and immediately after the release:

  ·       Price spikes happen within seconds

  ·       Fake breakouts trap traders

  ·       Stop-loss hunting becomes common

  ·       Liquidity can dry up temporarily

  ·       Both crypto and forex markets may react aggressively, especially pairs involving USD and major cryptocurrencies like Bitcoin and Ethereum.

  ·       ⚠️ This period is particularly dangerous for new and emotional traders.

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  ·       Recommended Trading Strategy During FOMC

  ·       If you plan to trade around the FOMC event, risk management is critical.

  ·       Best practices:

  ·       ✔ Avoid heavy or long-term positions during the announcement

  ·       ✔ If trading, use short-term scalping only

  ·       ✔ Target 10–20 pips maximum

  ·       ✔ Use tight and pre-defined stop-losses

  ·       ✔ Avoid over-leveraging at all costs

  ·       👉 Entering trades without confirmation during news releases can result in fast and significant losses.

  ·       Many professional traders prefer to stay out of the market until volatility settles.

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  ·       Impact on Crypto Markets

  ·       Cryptocurrencies are highly sensitive to interest rate expectations and overall liquidity.

  ·       Higher rates → less liquidity → pressure on crypto

  ·       Lower rates → more liquidity → crypto strength

  ·       Bitcoin often reacts first, followed by altcoins. A dovish FOMC tone can trigger:

  ·       Short-term rallies

  ·       Increased volume

  ·       Improved market sentiment

  ·       However, sudden reversals are also common, so patience is key.

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  ·       Impact on Forex Markets

  ·       In forex, USD pairs such as EUR/USD, GBP/USD, USD/JPY, and Gold (XAU/USD) typically see the strongest moves.

  ·       Possible scenarios:

  ·       Hawkish Fed → USD strengthens → USD pairs drop

  ·       Dovish Fed → USD weakens → risk currencies rise

  ·       Traders should wait for clear confirmation rather than reacting to the first candle.

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  ·       Market Direction Risk After the FOMC

  ·       This FOMC decision can:

  ·       Shift the overall market trend

  ·       Confirm or invalidate current setups

  ·       Trigger medium-term trend reversals

  ·       Sometimes the real move starts hours after the announcement, once the market fully digests the information.