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USD Erases Gains after FED Minutes

The anticipated FED minutes were released today, and has caused a bearish reaction to the USD.
The main take away from the meeting, was as follows
Most participants anticipated that, based on their assessment of the current economic situation and their outlook for economic activity, the labor market, and inflation, these condiitions could well be met by the time of the next meeting.

Essentially, confirming the rate hike. Sounds quite good for the USD
So why the sell off? This is the essence of …
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DAY 20 - EURUSD REACTION TO FOMC MINUTES

After last night FOMC minutes we have seen lot of buying interest on EURUSD, as market participants are somewhat convinced that a rate hike in September is unlikely.
Moreover, today's sell off in global equities market indicates slowdown in overall global demand and the lack of any inflation pressures in US would make the Fed hold off on normalizing policy for now. The FOMC minutes revealed that, “The Committee concluded that, although it had seen further progress, the economic conditions warran…
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DAY 21 - BOE MINUTES

Today, we have seen another evidence of the impact falling oil prices are making, which is urging Central banks and policy makers to shift their stance. The BOE minutes surprised the market revealing that the two hawks on the MPC beat a hasty retreat on the issue of rate hikes with the full committee returning to a 9-0 vote to keep rates steady for the time being. Both Martin Weale and Ian McCafferty reversed their votes in light of sharp drop in the inflation data and slowdown in UK economic ac…
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The British Pound – The Trend Down is Intact

Among a few tools of monetary policy, available to any central bank, the verbal stance on the current state of economy and financial system is the finest. Markets are desperately waiting for any signals, foreshadowing the forthcoming changes in interest rates or liquidity programs. Every statement, emanating from the the central bank, is thoroughly parsed and analyzed. The minutes, released on regular basis by BoE is not an exception.
On November the 19th BoE England Minutes were made public. T…
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DAY 8 - FOMC MEETING MINUTES REVIEW

We have seen some sell-off on USDJPY after release of FOMC Meeting Minutes and rightly so, as the general tone of the FOMC minutes were considerably more dovish than any one had reason to expect. It was simply not the case of raising interest rates any time soon, rather the discussion was more about headwinds to growth and weak impulses from the world, especially Europe that could hamper US growth in coming months.
USDJPY is currently hovering around 108.00 level and about 200 pips low from high…
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verindur avatar

I missed the rally. I had hints to against the USD. I made my money going with it. And closed my orders in the right time. I was going to reverse all my orders thereafter. But just thought enough for the day. When I looked at the Computer screen after 1 hour. OMG !!!!! I really felt what I had missed. Douuble the profit that I had made in the whole day was available just in 2 hrs.

alifari avatar
alifari 9 Oct

I think you did the right thing by taking profit because these central bank news events could change overall  sentiment very quickly and as such I always prefer to close trades before these events. It could have very easily gone the other way and wiped out all your profit. As Jesse Livermore quotes "Nobody can catch all the fluctuations".

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DAY 20 - What To Expect From FOMC Minutes?

What To Expect From FOMC Minutes? - Views From 10 Banks
Just couple of hours remaining for release of FOMC Meeting Minutes and traders all around the world are eagerly waiting for this news event to better understand future course of action by Fed's as to when they are planning to end QE and raise interest rates.

The following are the expectations for today's FOMC minutes from the July meeting as provided by the economists at Bank of America Merrill Lynch, Barclays Capital, Credit Suisse, and …
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DAY 9 - EURUSD TRADE REVIEW

EUR/USD was showing little movement on Wednesday during Asia & Europeon session, as the pair hovering above the 1.3600 level. However, we have seen some buying interest on this pair at the start of US session, which I was expecting before FOMC Meeting Minutes and as such I had placed a pending order at 1.3598 demand zone and price missed my order by few pips and hit my desired take profit level.
It would be interesting to see USD correlated pairs price movement in next couple of days, as it was …
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RBA Monetary Policy Meeting Minutes

Fundamental View

The Reserve Bank of Australia will publish its minutes from the early March policy meeting on Monday. On March 4 the RBA held the Australian rate steady at 2.5%. This week's minutes are expected to return to the AUD overvalued narrative as more exporters are pressuring the central bank after the currency continues to trade over 0.90. Traders are curious to to hear comments on Australian employment front. Housing and exports are recovering, but unemployment continues to rise whi…
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