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Wednesday September 21, 2011 NY TIME 2:15pm EDT - FOMC Interest Rate

Discussion in 'Current Forex Trading Signals' started by Stavro D'Amore, Sep 20, 2011.

  1. Stavro D'Amore

    Stavro D'Amore Former FPA Special Consultant

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    Hello

    Today we have the FOMC Interest Rate.

    Pair to trade: EUR/USD
    We need: Sell EUR/USD: Hawkish comments
    BUY EUR/USD: Dovish comments


    Economical Impact: High
    Typical Result: More hawkish than expected Good for USD Currency
    Occurrence: 8 times per year
    Spike Probability: Mixed, we can see high volatility during this release

    What is it? And why does the market care?
    FOMC uses to communicate with investors about monetary policy. It contains the outcome of their vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced their votes. Most importantly, it discusses the economic outlook and offers clues on the outcome of future votes.

    The U.S. Federal Reserve's Federal Open Market Committee statement is the primary tool the panel uses to communicate with investors about monetary policy. Scheduled 8 times annually, it reveals the outcome of the committee's vote on interest rates and other policy measures, along with commentary about the economic conditions that influenced the members' votes.
    Traders focus on the slight changes to the statement that the FOMC makes to each statement.

    If the statement is more hawkish than expected, that is usually good for USD.

    Method to trade this:
    Stavro D’Amore Trading Method

    During the FOMC statement I will look for an instant move of momentum, if I see more than a 25pip mini spike I will go with the trade that way, I will place a 20 pip SL not including spread.

    I will exit this trade when I see a bottom forming or a resistance level.

    Please make note that Liquidity will be in the EUR/USD pair and at the moment this pair has been Bullish Yesterday, so if we get a hawkish comment from the FOMC meeting we could see the bears run into this pair and drive it bellow well bellow 1.3500, Please keep in mind that this pair can bounce a lot during this release.

    Historical Chart and Data for FOMC

    all the best

    Stavro D’Amore
     
    #1 Stavro D'Amore, Sep 20, 2011
    Lasted edited by : Sep 8, 2016
  2. ivylwells

    ivylwells Recruit

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    I love ur analysis

    Thanks Steve, I love ur straight forward analysis of the markets.. keep up the good work
     

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