Market participants have yet to comprehend and draw the right conclusions after the results of the Fed meeting, and only a little time remains for consideration. A new series of economic data is quickly approaching, as well as the decision on the interest rate of the Bank of Japan and comments by the ECB President Mario Draghi.
Traditionally, the Bank of Japan publishes its decision on the interest rate without specifying the exact time. In such a situation, it is advisable not to have highly leveraged positions in which one of the currencies is the Japanese yen.
As always, the most interesting aspect, from the point of view of the force of influence on the currency, will be the official comments on the decision. They analyze the reasons for the decision on the interest rate, and also publish the view of the Bank of Japan on the overall situation in regards to the monetary policy.
At the end of publications, a press conference of the Bank of Japan will be held.
In the section "trading ideas", options are considered for the development of events after the decision on the interest rates of the Fed and the Bank of Japan. This option is relevant.
Statistics from the US will come out with data on initial applications for unemployment benefits, and a little later, the ECB President Mario Draghi will give a speech.
It is necessary to dwell on one aspect of the forthcoming speech. The euro is currently at rather high levels and, in the absence of fears from the ECB about an expensive European currency, market participants will take this position of the ECB as a strong incentive to continue their game to raise the EUR.
In this context, it is worth paying attention to the detailed analysis of the EUR/USD pair on September 20, which is relevant.
Summing up the Fed meeting, the decision on the interest rate of the Bank of Japan and comments by Mario Draghi, you can begin to build a strategy for further work in the financial markets. The main aspect to determine is the direction of long-term trends in the context of the events that have taken place, and to move in a similar direction. New financial ideas and goals can be found the following publications. We wish you profitable trading!