Trading the Fed: Expect quick moves on before and after the event

Dr. S. Sivaraman i-knowindices.com

On 15th March 2017 by 18:00 GMT FOMC statement and economic projections are to be presented while announcing the Federal Fund Rate

The present rate is 0.75%. It is widely expected that an increase of 0.25% could be on the cards. So we all are expecting USD gaining sentiment after the announcement. Following that by 18:30 GMT FOMC press conference is going to be tracked by analysts to read in between – whether hawkish or dovish.

Expected market moves before and after FOMC rates and FOMC press conference

EURO and GBP are expected to make a dip during late European session and start the gaining moves from the start of US session (13:30 GMT) to confuse traders. Normally traders avoid taking positions before the prime data release. The players will have done the drop before the day of the announcement and they are expected to gain the levels in EURO and GBP from Japanese session of that day. During early European session, they could quickly gain further levels and slide towards the close of the European session. From the start of US session they are expected to rise EURO and GBP simply giving some excuse for the rate decision and make more quick rises during and after FOMC press conference.

Those who are opportunistic traders could buy EURO and GBP during the quick drop and keep stop at entry and exit after the rise they could do for FOMC trigger time.

All the best in your trades.

Author

Dr. S. Sivaraman

i-knowindices.com

Dr. S. Sivaraman is 1952 born and got his Ph.D in applied statistics in 1979. He served as professor for 28 years under University of Madras, Chennai, India.

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