Trade closed manually pre FOMC

I have just manually closed today's GBP NZD trade for a profit of +1. To be fair, there is a good chance the trade will carry on to the 1.5 profit target through the FOMC decision. But nonetheless, I feel it's prudent to close the trade to guard against any surprises.

Regarding the FOMC, a 'hawkish' cut is expected. Which will likely see the USD maintain strength over the coming days / weeks.

The difficulty with trading post decision is the fact the BOJ follow just a few hours after. If you do find conviction in a USD trade, it depends if you have the appetite to wait around and close the trade pre BOJ. personally, I will wait for either a possible 'in the moment' news trade post BOJ press conference. Or most likely wait until after the BOE tomorrow.

Regarding the BOJ. It's anyone's guess what will happen and what the reaction will be. The consensus is for a 'hawkish hold'. But the BOJ have a habit of surprising and a 'hawkish hike' or even a 'dovish hike' are not out of the question. I will assess my thoughts on near term JPY direction post press conference.

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