Trader's Glossary

FOMC (Federal Open Market Committee)

Members of the Federal Reserve’s Open Market Committee are responsible for voting on where U.S interest rates should be set. Consequently, whenever one of their number is scheduled to speak publically, or their internal meeting minutes are released, it is regarded as a high-impact economic indicator. If their sentiment is more hawkish than expected this can have a positive effect on the value of the US dollar, and vice versa if it more dovish than expected.