FOMC Statement

FOMC Statement

From federalreserve.gov

Information received since the Federal Open Market Committee met in September suggests that economic activity is expanding at a moderate pace. Labor market conditions improved somewhat further, with solid job gains and a lower unemployment rate. On balance, a range of labor market indicators suggests that underutilization of labor resources is gradually diminishing. Household spending is rising moderately and business fixed investment is advancing, while the recovery in the housing sector remains slow. Inflation has continued to run below the Committee's longer-run objective. Market-based measures of inflation ... (full story)

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Oct 29, 2014 5:40pm

Quoting Forextrapain

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I just had to pull over and wash my windshield. All these gold bug splattering are making it hard to see.

Ignored

Now thats funny. They will all come out again during the next recession.

Forexia

Oct 30, 2014 3:02am

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Two thoughts come to mind after reading the FOMC statement, one of the more detailed in recent years:

1) More market volatility and uncertainty will be expected from now on considering that the Feds are throwing out the more consistent approach to its monetary policy and instead decide to adopt a more "see as we go" and "play by the ear" approach and that could mean any new changes or development in the economic factors could trigger entirely different directions for the policy.

2) Accomodative mechanisms of the policy is not going away and will not go away for a very long time even if the economic condition has reached the target level. So no rate-increase in sight for a long time. Surprised that the market didn't react to this one at all and instead all focused on the ending of QE.

Conclusion for us traders: Trading on FOMC policies will be LOT harder in the future as surprises could be more frequent.

Forexia

Oct 30, 2014 12:11pm

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Quoting FXBeppie

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You are completely missing the key phrase that "underutilization of labor resources is diminishing". This is new and hawkish.

(Not that I care about these statements because the experienced Elliott trader knew another leg down would follow soon).

Ignored

Hmmn I always thought underutilization of labour resources is dovish because it means it's underemployment in that employment has not reached full optimum levels thus justifying accomodative policies.

frx_trader

Oct 29, 2014 2:02pm

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Finally I get a talking chart.

It says: USD down, USD down, USD up, USD Up. FOMC statement, FED ends QE. USD Up, USD Up, AUD down, AUD down.

But it gives me one big problem, It confuses me. hahahaha LOL

frx_trader

Oct 29, 2014 2:55pm

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Quoting Pip-Ranger

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Definitely a risk-off response with Japanese yen rallying, US dollar rallying, stock market off, bonds up.

Start of new trend in fx markets? What you guys think?

Ignored

Positive for World economy, except maybe US.

Forextrapain

Oct 29, 2014 2:30pm

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Quoting irongoose

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10,15,20 pip stop loss

Ignored

Wow. I would worry about getting stopped out too, if I didn't have a bigger buffer than that. Being a long term trader, that just doesn't seem like it even gives any room for the position to try and mature before a loss in incurred. I thought guys using 50 pip stop losses were playing too close on most pairs, but these numbers would tend to drive me insane, as most pairs can cover that much ground in less than 5 minutes.

Forextrapain

Oct 29, 2014 2:47pm

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Quoting irongoose

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I'm a short term trader so I look for low risk entries into the market on the daily bases and that is why I listed stops of that size.

What used to drive me crazy was being down 50+ pips and then finding out I was wrong about direction!

Ignored

OK. Still scary, but as long as that is what your ATR is for the chart your using, then have at it. Happy Trading.

PipMaxzz

Oct 29, 2014 1:48pm

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Fed has to give the reason for ending the QE and thats because the labor market is improving.
Interest rate is low, because the improvement is not good enough.
It will keep the low rate for considerable time. I dont think USD will strengthen further.

irongoose

Oct 29, 2014 2:13pm

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Quoting Lionheartfx1

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Stay out, STAY OUT whenever you can

FOMC takes a lot of people to the cleaners LOL......so glad im sitting on the sidelines....Im not faling for that shit again.....lesson learnt

But congrats to whoever is on the sell side....

Ignored

US brokers are particularly bad for slipping their clients big time during news events so a lot of times its not even safe to predetermine your losses and take a chance on something big happening like today. But today I think most people were long the Dollar and cleaned house plus there wasn't a great deal of stop hunting done before the Dollar sky rocketed up in price.

Like you I generally stay out of the market during news events unless I'm already up 20 pips or more then I'll hold going into news other then that I don't try trading it anymore and just have to sit back and say to myself "I should have shorted that" or "I should have went long" Its painful to watch sometimes knowing that you could have made $1000.00 in 10 minutes but what is worse is to see your 10,15,20 pip stop loss taken out and then the price takes off in your direction or those stop losses slipped for double the amount or more!

I rarely catch one of these big movements anymore but I still find good trades without them and one nice thing about the Forex market is there is always good trades waiting to happen on another day. Who knows what will happen tomorrow, maybe they will retrace this move and then the Dollar will continue up and we could get in or the opposite!

irongoose

Oct 29, 2014 2:43pm

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Quoting Forextrapain

Disliked

Wow. I would worry about getting stopped out too, if I didn't have a bigger buffer than that. Being a long term trader, that just doesn't seem like it even gives any room for the position to try and mature before a loss in incurred. I thought guys using 50 pip stop losses were playing too close on most pairs, but these numbers would tend to drive me insane, as most pairs can cover that much ground in less than 5 minutes.

Ignored

I'm a short term trader so I look for low risk entries into the market on the daily bases and that is why I listed stops of that size.

What used to drive me crazy was being down 50+ pips and then finding out I was wrong about direction!

irongoose

Oct 29, 2014 2:58pm

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Forextrapain if you go back and look at the price of the Euro/USD before the news the price tested yesterday's high twice going above it by only 5 pips each time, had I entered the market on one of the pull backs with just a low risk 10 pip stop loss I would have cleaned house today!

Anyway that is the type of entries I take and there are some rules also that I follow that determines whether or not I take a trade.

15 min chart.

feelmypecs

Oct 29, 2014 3:43pm

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Violent reaction, but not violent enough to force a trend change. USD NEEDS a correction, which it has already slightly began. USD/CAD is on the way down to 1.1 within the next 14 - 28 days, no question.

There is a chance it will rebound up to 1.13, but this is both unlikely, and nothing but a sell opportunity if it presents itself. Two trendlines converging at 1.13, and pair needs a correction.

Tony112

Oct 29, 2014 1:04pm

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I bought, USD/CAD. I was thinking Cuba or Jamaica.. don't want something expensive.

Lionheartfx1

Oct 29, 2014 1:11pm

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Stay out, STAY OUT whenever you can

FOMC takes a lot of people to the cleaners LOL......so glad im sitting on the sidelines....Im not faling for that shit again.....lesson learnt

But congrats to whoever is on the sell side....

Rtm

Oct 29, 2014 4:16pm

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ROFL

Quoting Forextrapain

Disliked

I just had to pull over and wash my windshield. All these gold bug splattering are making it hard to see.

Ignored

ALL these comments are killing me from laughter

Razor_trader

Oct 29, 2014 1:08pm

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Quoting Nagy Attila

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Soo if I understand it correctly The end of QE and no rate hike...

Ignored

Pretty much the conclusion everyone expected

Razor_trader

Oct 29, 2014 1:10pm

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Now to see how far the stop hunt runs on the majors before there is the liquidity to do an about face and run the other way :/

nkimandi

Oct 29, 2014 5:24pm

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Quoting Forextrapain

Disliked

I just had to pull over and wash my windshield. All these gold bug splattering are making it hard to see.

Ignored

LMAO

frx_trader

Oct 29, 2014 2:54pm

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Quoting kuncung

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gap down for dax german tommorrow

Ignored

Don't lose your shirt and shorts.

Manudatinh

Oct 29, 2014 1:24pm

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Quoting bd pips

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whats target for eur usd

Ignored

1.22

SakibFX

Oct 29, 2014 1:04pm

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About gold... sell it?

imbonitore

Oct 29, 2014 1:23pm

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Problems for usd began in future

Forextrapain

Oct 29, 2014 2:04pm

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I just had to pull over and wash my windshield. All these gold bug splattering are making it hard to see.

Forextrapain

Oct 29, 2014 5:12pm

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Quoting Rtm

Disliked

ROFL

ALL these comments are killing me from laughter

Ignored

Oct 29, 2014 1:22pm

USD StopLoss hunting

Oct 29, 2014 2:49pm

gap down for dax german tommorrow

bd pips

Oct 29, 2014 1:07pm

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the Committee decided to conclude its asset purchase program this month.

bd pips

Oct 29, 2014 1:19pm

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whats target for eur usd

Nagy Attila

Oct 29, 2014 1:06pm

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Soo if I understand it correctly The end of QE and no rate hike...

Nagy Attila

Oct 29, 2014 2:13pm

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Quoting Razor_trader

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Pretty much the conclusion everyone expected

Ignored

Thank,s

Forex-Queen

Oct 29, 2014 1:08pm

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Statement not important. Graph is important. period.

fxmusa

Oct 29, 2014 1:22pm

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the Committee decided to conclude its asset purchase program this month.so end of QE

forexfoolish

Oct 29, 2014 1:24pm

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It looks like the long awaited 1.25 range has arrived, more or less on shedule, as the big banks predicted, by year´s end, November-December.
From here to where?
Hard to fathom. Draghi said Euro zone recovery wil not be dependent on more Euro devaluation.
True or False? Make and checkmark your appropiate choice.

A FOOL AND HIS MONEY SOON ARE PARTED

noelsie

Oct 29, 2014 2:14pm

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Well I've been waiting for this! :-) My previously sad sell trades lookin' good! Been sitting it out for 2 weeks! The trend is your friend until the bend at the end.....I was beginning to wonder if this was it.

namminh

Oct 30, 2014 12:30am

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qe3 must end because it was appointed for this month but a hint for hiking interest rate is still based on the improvement of labor markets and the 2.0% inflation target. Such things if can not be fulfilled at the end of this year,i think it will be a dilemma for Fed...QE4 maybe then released.

FXBeppie

Oct 30, 2014 3:14am

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Quoting Forexia

Disliked

Two thoughts come to mind after reading the FOMC statement, one of the more detailed in recent years:

Ignored

You are completely missing the key phrase that "underutilization of labor resources is diminishing". This is new and hawkish.

(Not that I care about these statements because the experienced Elliott trader knew another leg down would follow soon).

hassan561

Oct 29, 2014 1:03pm

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buy dollar i just told this from week a go

Oct 29, 2014 1:04pm

great day for $

Oct 29, 2014 1:13pm

Excellent news for the USD. Europe is struggling, Japan is still meh.

Idoscon

Oct 29, 2014 1:17pm

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USD SKYROCKETING....

Trader#2092

Oct 29, 2014 2:19pm

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Nationalism has no value in FX. Overvalued EUR all but prevents exports, + hurts tourism. Poor liquidity in European markets, positive (or less neqative) news on US economy, jobs, etc. Low inflation lingers and only logical response is keep rates low and stable. Europe is essentially going through what the U.S. went through years ago when it began taking steps to help struggling economy: lowering interest rates & bond purchasing (along with other things) to stimulate the economy. Currently, more ECB/government stimulus is necessary. Even then, economic turnaround doesn't happen overnight. The U.S. economy is far from perfect, but U.S. has a longer history as a debtor nation. Americans excel at spending money they don't have. Strengthening USD and weakening EUR IS the closest FX comes to being logical. I'm not sure the FOMC statement expressed anything new, but it made case for movement that is both necessary for the future of EUR economy and justified.

Trader#BFA7

Oct 29, 2014 2:22pm

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thank you Stanley. I am going to find another copy of that book that you wrote with Dornbusch that I half read way back in the 70's and got half way through before flunking ECO2. I thought I was a smartass after receiving distinctions in calculus and statistics. thank you, Chairperson Yellen. sorry mate to Kocherlokota, we all get humbled at some time, the financial markets do this to us. it happens in life.

P.S. I betcha Stanley is the only FOMC member who knows where Lake Kariba is.

Pip-Ranger

Oct 29, 2014 2:32pm

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Definitely a risk-off response with Japanese yen rallying, US dollar rallying, stock market off, bonds up.

Start of new trend in fx markets? What you guys think?