What is the best news trading strategy for this, as there is a lot of 2-way action usually. Any ideas?
Forex rules
FOMC Statement COME OUT 5 minutes before . Why ? 4 replies
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Quoting fspiraniDislikedQuote from Newstraderfx from other thread
"We've seen a bit of consolidation in the GBP in the London session this A.M. We could yet see a move down in the GBP as traders may buy into a Hawkish FOMC report, but I think there is significance in the fact that traders apparently are holding their positions so far in the face of an important release.
I think a sustained break above 8600 will indicate that a serious sell off of positions is occuring prior to the FOMC minutes. It could run 50-60 pips above that if traders lose their stomach for holding profitable positions in the middle of a release. If the GBP holds below 8600, it will indicate that traders are confidant that the minutes will be hawkish and that their $ long positions will get even more profitable.
If you're interested in trading the FOMC minutes you'll need to watch the pair all morning. Based on the above, you'll know how traders who are already in the market stand. If you want to go with them, take a short position in the GBP prior to the FOMC release only if the pair is 8580 or lower. If it's gone into the mid 8600's stay away. Anything higher then the mid 8600's may be evidence that traders are selling their long positions into the rumor of a dovish release, but this is more risky in my opinion. Personally, i'm hoping to see it sitting right where it is now-8580."Ignored
Quoting SKW322DislikedHe's saying that there is not much of a good reason to enter a short on the pair (sell GBPUSD) if it has run up to the mid 8600s prior to FOMC release time.
Again, the rationale is that dollar strength could become been undermined if people already in the market decide to take profits rather than stick it out.
We havn't seen 8590 broken yet this am, and current price is 8570. All of which I interpret as positive for my decision to remain short on the EURUSD from overnight.
Hope that helpsIgnored
Quoting learningtheropesDislikedI'd of thought we'd of heard from the "King" or Merlin on this topic with less than 20 minutes to go?Ignored
Quoting merlinDislikedhaha you know im here! i wouldnt miss this one! just been a little busy preparing my thoughts on this one.
basically, im now officially a dollar bull, so i am looking for confirmation on that from the price action.Ignored
Quoting learningtheropesDislikedI'd of thought we'd of heard from the "King" or Merlin on this topic with less than 20 minutes to go?
I'm with you, and hope you are correct Money Master. Sitting with shorts on GBP and EUR vs USD, sitting at slight loses....Ignored