This trading week has been, so far, not only volatile but also very profitable for traders. Yesterday, we saw the U.S. dollar gaining back ground against the euro and British pound ahead of today’s highly anticipated FOMC decision. Thus, short traders were able to book a good profit.
The pound slipped below 1.40 after U.K. inflation data came in worse-than-expected but losses were limited due to hopes that tomorrow’s Bank of England statement will be hawkish.
The euro sold off after the German and Eurozone ZEW Surveys fell well below expectations.
Today, all eyes will be on the Fed decision due at 18:00 UTC followed by Jerome Powell’s news conference 30 minutes later. Market participants are curious whether the central bank will lift its projections for the pace of policy tightening this year. While a 25-basis-point rate is almost certain the focus will turn to updated economic projections (SEP – Summary of Economic Projections) and the Fed’s dot plot forecast. If the dot plot shows monetary policy makers favoring 4 rate hikes this year, the dollar will rise. Anything else could disappoint the market’s high expectations and could send the dollar tumbling.
While today’s Fed decision will be one of the most important decisions in years, it does not mean that it will be market-moving in terms of profitable trading opportunities. As usual, we will prepare for both bullish and bearish scenario and will update traders (subscribers) about all current and pending trades on our live signal page.
We wish you profitable trades for today!
Here are our daily signal alerts:
EUR/USD
Long at 1.2278 SL 25 TP 30, 50
Short at 1.2230 SL 25 TP 30, 50
GBP/USD
Long at 1.4025 SL 25 TP 30, 50
Short at 1.3980 SL 25 TP 30, 50
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