News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
More View more
Fed, BoJ and RBNZ Decisions Ahead Threaten Heavy FX Volatility

Fed, BoJ and RBNZ Decisions Ahead Threaten Heavy FX Volatility

John Kicklighter, Chief Strategist

Talking Points:

  • Wednesday will start a three-day period of key event risk including both rate decisions and GDP readings
  • The Fed rate decision is the top listing for Wednesday's session with influence over both the Dollar and 'risk'
  • Volatility behind the Pound and Aussie Dollar set the stage for heavy reactions to the RBNZ and BoJ as well

See how retail traders are positioning in the Dollar, Pound, Kiwi and Yen heading into this key event risk using the FXCM SSI readings on DailyFX's sentiment page.

Wednesday will kick off a 72-hour spree of high-level event risk. And, given the skittishness amongst traders along with their underlying skepticism; conditions are ripe for fireworks. This is certainly exciting, and the period of general restraint and congestion holding over the market gives this a sense that a fog may soon be lifted for traders. However, first and foremost, we must appreciate the risk that this dense round of event risk draws. The center piece of Wednesday's session will be the Fed decision. It would be a mistake to write off the possibility of a surprise hike completely, but the real debate will likely center on evidence for speculating on June. The Dollar is an obvious lightening rod for this event, but the risk influence may well be more substantial - and very likely skewed. With the RBNZ and BoJ rate decisions as well as the UK GDP figures on deck; it will be difficult to navigate straightforward trade conditions. We take count of the event risk along with the opportunities and threats it draws in today's Trade Video.

To receive John’s analysis directly via email, please SIGN UP HERE

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES