FOMC in focus.

Quite often the release of the FOMC minutes doesn't have an effect on the market. But today I've read a couple of articles suggesting it could do. Following the 'dovish twist' at December's meeting. It's been priced in that the FED will cut rates six times this year, starting in march. But Mr Powell and co. Have other ideas, citing three cuts and starting later than march. If the event does create volitility, it could be fairly binary. Meaning, if the market likes what it hears. Bond yields will fall, stocks will rise and the USD will weaken. Creating a USD short, most likely Vs the AUD or NZD.

If the market is disappointed, Bond yields will rise, stocks will fall and the USD will strengthen. In this scenario, I would think a USD JPY long would be the trade.

12 hours is a long time in trading, and anything can happen in-between, but my current decision is to wait for the release of the meeting minutes.

Feel free to email any questions: johnelfedforexblog@gmail.com

Best wishes, John