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.



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

Live Webinar

Live Webinar Events


Economic Calendar

Economic Calendar Events

Free Trading Guides
Please try again
More View more
Strategy Video: What is the Market Pricing in for Wednesday's Fed Decision?

Strategy Video: What is the Market Pricing in for Wednesday's Fed Decision?

John Kicklighter, Chief Strategist

Talking Points:

• The key tenet of fundamental analysis is to determine what is most important to the market

• The next step is determining what is 'priced in' for that theme and spot event risk that can alter it

• We use the FOMC decision to discuss the process of assessing what's priced in and how it can move markets

Want to develop a more in-depth knowledge on the market and strategies? Check out the DailyFX Trading Guides we have produced on a range of topics.

The FOMC rate decision scheduled next Wednesday has the potential to be one of the most market-moving events we have seen released in weeks. That said, how do we determine what can move the markets? Furthermore, what determines which outcomes will generate heavy market response while others are roundly ignored? The first tenet of fundamental analysis is to establish what is most important to the market (practically, the greatest number of market participants). From there, determining trend, momentum and reaction to future catalysts is a function of establishing what is 'priced in'. If the masses have fully positioned for an expected fundamental development, we would expect no further change in its price (trend) nor reaction (volatility) to event risk related to it. However, rarely are the markets so on-the-mark. We discuss how establishing what the markets have priced in can help our trading - using the upcoming FOMC decision - in this weekend Strategy Video.

Sign up for John’s email distribution list, here.

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