The FOMC should take center stage in this week’s risk event lineup.
In this video we break down the three core steps of our analysis process:
1) Finding the baseline of the relevant currency (in this case it is the USD)
2) Finding the baseline for the upcoming risk event (in this case it is the FOMC meeting)
3) Establish what type of changes from the FED can cause a significant sentiment shift in the markets to create possible trading opportunities.
Going into this week’s meeting the important thing is to keep in mind that the market is widely expecting the FED to cut interest rates by 25bsp.
Thus, any reaction from the cut itself will probably be muted. All the focus will turn to Jerome Powell’s press conference as well as the updated FED dot plot.
Check out this week ahead video on how to prepare for this upcoming event.
Highlights of the video:
01:15 – Baseline context for the USD
03:30 – Baseline expectations for the FOMC meeting
07:26 – Possible sentiment shfits
09:47 – Possible currency pairs
11:11 – Learn more about trading phase one and two sentiment shifts