FED MINUTES REVEAL A NEW HAWKISH TONE
AS AN FN FX TRADER
WHAT WOULD I DO NOW AHEAD OF “JACKSON HOLE”?
Without doubt yesterdays HAWKISH TONE within the FOMC minutes release certainly showed the power of the USD when unleashed. I was playing with a DEMO FX account at time on reversal strategies; the change of direction in the USD was powerful. It shows what we had been missing in FX volatility over the past few months.
With the Jackson Hole speeches for Janet Yellen and Mario Draghi scheduled for tomorrow, all ears will be pinned back waiting for Yellen’s content. If she turns HAWKISH the USD will be explode. My gut is that she will try to strike a balance, but she has to recognize the improvements noted in the FOMC minutes, so it will be interesting to say the least.
The EUR/USD held up its drop at 1.3240 yesterday after the data release. Tomorrow (Friday 22nd August) it could be at 1.3100 in pretty short order should Janet Yellen change her tone from DOVISH to HAWKISH. The USD index would leap up like a wild salmon!
In the interim, however, I think that the USD majors will move into mid-range positions ahead of Jackson Hole. This makes sense given the increased importance of the commentary that is due and the fact that many traders will be in process of using whatever opportunities there are to cover or reduce position sizes.
If you are in LIVE trades right now. I would be covering or reducing sizes to minimums. I think that the FOMC minutes have moved the goalposts somewhat given what most analysts’ thoughts would have been at the start of the week.
Your TRADING ACCOUNT is precious DO NOT take risks
Today (21st August) and tomorrow, the TV networks will have guests crawling out from under rocks to give an opinion. Remember, many of these people DO NOT TRADE LIVE if AT ALL!
It’s your risk but in my opinion it’s best to trade on facts. You do not need the entire move to make money; you can have a great living of FOREX by getting the middle of the move. Think about it…
Scott Pickering
The Pip Accumulator
AS AN FN FX TRADER
WHAT WOULD I DO NOW AHEAD OF “JACKSON HOLE”?
Without doubt yesterdays HAWKISH TONE within the FOMC minutes release certainly showed the power of the USD when unleashed. I was playing with a DEMO FX account at time on reversal strategies; the change of direction in the USD was powerful. It shows what we had been missing in FX volatility over the past few months.
With the Jackson Hole speeches for Janet Yellen and Mario Draghi scheduled for tomorrow, all ears will be pinned back waiting for Yellen’s content. If she turns HAWKISH the USD will be explode. My gut is that she will try to strike a balance, but she has to recognize the improvements noted in the FOMC minutes, so it will be interesting to say the least.
The EUR/USD held up its drop at 1.3240 yesterday after the data release. Tomorrow (Friday 22nd August) it could be at 1.3100 in pretty short order should Janet Yellen change her tone from DOVISH to HAWKISH. The USD index would leap up like a wild salmon!
In the interim, however, I think that the USD majors will move into mid-range positions ahead of Jackson Hole. This makes sense given the increased importance of the commentary that is due and the fact that many traders will be in process of using whatever opportunities there are to cover or reduce position sizes.
If you are in LIVE trades right now. I would be covering or reducing sizes to minimums. I think that the FOMC minutes have moved the goalposts somewhat given what most analysts’ thoughts would have been at the start of the week.
Your TRADING ACCOUNT is precious DO NOT take risks
Today (21st August) and tomorrow, the TV networks will have guests crawling out from under rocks to give an opinion. Remember, many of these people DO NOT TRADE LIVE if AT ALL!
It’s your risk but in my opinion it’s best to trade on facts. You do not need the entire move to make money; you can have a great living of FOREX by getting the middle of the move. Think about it…
Scott Pickering
The Pip Accumulator
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