Well, we’re about to embark on another wild ride tomorrow as the event that all traders have been waiting on (for what seems like forever now)…the FOMC interest rate decision!
Unless you’ve been under a rock and sleeping for the past few weeks, then you know that traders have been expecting a 25 basis point cut from the Fed tomorrow, which seems to have been priced into currencies as the Dollar has sold off for the past week or so. Will we see the Dollar sell off further??
If we do see a cut of 25 or more basis points, then the USD will most likely continue its fall. If we see a surprise rate hold, then the Dollar may rally on some profit taking as recent moves seem to be over done. Which ever way it may go, I will be on the sidelines until after the announcement, planning my next move.
So, no trade idea tonight, but stay tuned for a possible trade idea after the report.