In August, where the 1st no hike was made, USD streghtened. However, the last 3 FOMC, USD strengthen only to weaken a few minutes later.
Last October, traders were conditioned by Grep Ip that the Fed will be extra hawkish - but the statement was same with that of September.
December statement was basically same with the last 2. Today, it is being rumored again that Fed will be extra hawkish again (a repeat of October?). USD strengthened by 100 pips vs GBP earlier - same as what happened last October!
What is important to know is will FED show signs of "rate cuts" in the future instead? After all, traders were conditioned that there will be a cut anytime soon.
How would you trade FOMC later?
Me? Im very exhausted after having little sleep from the NZD trade balance wait. I should have slept through it instead.
Last October, traders were conditioned by Grep Ip that the Fed will be extra hawkish - but the statement was same with that of September.
December statement was basically same with the last 2. Today, it is being rumored again that Fed will be extra hawkish again (a repeat of October?). USD strengthened by 100 pips vs GBP earlier - same as what happened last October!
What is important to know is will FED show signs of "rate cuts" in the future instead? After all, traders were conditioned that there will be a cut anytime soon.
How would you trade FOMC later?
Me? Im very exhausted after having little sleep from the NZD trade balance wait. I should have slept through it instead.