Here is the latest example
Good questions regarding FOMC from Forex Gump
When it comes to gauging the effects of tomorrow's FOMC statement on the dollar, there are three questions we need to answer:
1. By how much will the Fed increase its balance sheet funding?
Most believe that if the Fed doesn't bump up its asset purchases by at least $45 billion a month, risk sentiment will turn sour and prop the dollar up.
2. What will comprise the Fed's additional purchases?
The markets are looking for the Fed to spend $45 billion in treasuries alone, so such an announcement may not have a big market impact. If, however, the central bank decides to shell out dough for more mortgage-backed securities, it could catch the markets off-guard and possibly lead to a dollar rally.
3. Will the Fed revise its economic forecasts?
As for the Fed's economic projections, upward revisions would likely lead to a risk rally, while downgrades could deal a blow to the market's risk appetite.
Whatever the case may be, tomorrow's big event could very well determine whether the dollar ends 2012 on a high or low note. Make sure you tune in at 5:30 pm GMT for the FOMC statement and at 7:00 pm GMT for the Fed's economic forecasts.
Here is another
$USDJPY surging right now, into late-March/early-April swing highs at 83.15/45. Big move ahead of $FED meeting - someone not expecting QE?
Just passing along information as a FYI public service. I like having some FA / other traders thoughts with my TA. Makes ones account healthy, wealthy, and for me wise.
Trade smaller than rational because the market is irrational...
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