Will Fed taper this week again?

[Rambo35]

Most expect another $10 billion taper this week and I think they will do so as well before they may decide to skip one meeting. So many expect a taper that I think it is already priced into the US Dollar and the reactions once taper is announced will be rather limited while I surprise stop of tapering is likely to result in a violent sell-off in the USD. I am setting up my trades in the next two day so that I may be prepared for either scenario with a bias towards taper.

Just my thoughts guys, feel free to share yours.

 

[RahmanSL]

If I am in the FED's shoes, and knowing how much any positive or negative commitments to tapering have on the almighty dollar....and not desiring any wild fluctuation in the currency....I would adopt a none committal statement.....sort of muttering something like:
"Yes, yes, of course we are considering tapering, but on the other hand, and depending on the outcome of the next meeting, we might not taper so much...we just have to be realistic and assess the real state of the economy in the next month or so and we shall do what's best to suit the economy....bla, bla, bla....and so on."

Result: All is quiet in the forex market...another wet fire cracker that went "phifff" instead of the expected "boom"........BUT then again, I could be dead wrong and, in which case, I would either be extremely happy or unhappy depending on which side of the market I am at.

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Hey LoRio....you gonna whack the EUR/USD with a "win-or-die" short trade?

 

[LoRio]

If I am in the FED's shoes, and knowing how much any positive or negative commitments to tapering have on the almighty dollar....and not desiring any wild fluctuation in the currency....I would adopt a none committal statement.....sort of muttering something like:
"Yes, yes, of course we are considering tapering, but on the other hand, and depending on the outcome of the next meeting, we might not taper so much...we just have to be realistic and assess the real state of the economy in the next month or so and we shall do what's best to suit the economy....bla, bla, bla....and so on."

Result: All is quiet in the forex market...another wet fire cracker that went "phifff" instead of the expected "boom"........BUT then again, I could be dead wrong and, in which case, I would either be extremely happy or unhappy depending on which side of the market I am at.

==========================

Hey LoRio....you gonna whack the EUR/USD with a "win-or-die" short trade?

Ehehe.
Ill wait for NZD One hour after FOMC.
Cases :

• NoTaper + Kiwi 2.5 % = Long Kiwi
• NoTaper + Kiwi <2.5 % = Counter entry at next support or resistance
• NoTaper + Kiwi >2.5 % = Long Kiwi On First Spike PullBack.(cause , you cant catch such first spike , it literally comes before the news )
• Taper + Kiwi 2.5 % = Short Kiwi
• Taper + Kiwi <2.5 %= Short Kiwi On First Spike PullUp.
• Taper + Kiwi >2.5 %= Counter entry at next support or resistance.

There is also the likelihood of a strong dollar pushing kiwi to major support levels and the rate rising.
Weak Dollar pushing kiwi higher no matter what.

 

[RahmanSL]

Well, well, well....I see maturity has set in....and I am sure you will do well on the NZD/USD cause you seems to have pretty much got it all covered.

I am not taking any "all-in" positions on the EUR/USD either....in fact I have been scalping the pair on the rise and has got some nice profits...also been scalping the EUR/TRY on the rise with good results.

Alright, stay safe and best of luck!

 

[Pharaoh]

"We'll be looking into the expansion and/or contraction of the increase and/or decrease of tapering or growing the quantitative easing. Further to improve the economy, we may or may not add or subtract the creation or removal of the availability of currency or credit or debt by other means. We hope this makes the FED's stance on this issue clear. Now you can go about your day with full confidence that the FED is here with a solid plan to solve all of America's fiscal problems."

 

[LoRio]

Well, well, well....I see maturity has set in....and I am sure you will do well on the NZD/USD cause you seems to have pretty much got it all covered.

I am not taking any "all-in" positions on the EUR/USD either....in fact I have been scalping the pair on the rise and has got some nice profits...also been scalping the EUR/TRY on the rise with good results.

Alright, stay safe and best of luck!

yeah.Maturity.
Must be my spongebob panties.
[_]o
TRY was a stake on the plate.

 

[Rambo35]

I do not think the Fed will be out of the markets by the end of 2014.

 

[Pharaoh]

I do not think the Fed will be out of the markets by the end of 2014.

The Fed will remain in the markets and will keep some sort of artificial support going until they've finally destroyed the dollar.