Forecast - A Heavy Event Risk Week Will Center on the FOMC Decision

Talking Points:

• The FOMC rate decision is not expected to result in a rate change, but its influence spans much further
• Technical breakouts abound, but fundamental backing is in very short supply
• Top event risk includes the Fed, BoJ and RBNZ rate decisions along with US, UK and Eurozone GDP

Having trouble trading in the FX markets? This may be why.

Chief Strategist John Kicklighter discusses the top Forex fundamental themes for the coming week of trading. There is a loaded docket that is likely to generate serious waves for the FX market over the coming week. The weather hits mid-week with the release of the UK GDP, FOMC rate decision, RBNZ decision and BoJ decision all within the same 24 hour period starting Wednesday. This represents systemic risk for three of the most liquid currencies and materially alters their risk-reward balance. The deluge will continue through the remainder of the week, but the ultimate pull will come on behalf of the Greenback. As a lightning rod for divergent monetary policy as well as general risk trends (which are well-shaped by benchmarks like the S&P 500), the world's most liquid currency may define market conditions for much more than just FX. We discuss the imposing and impending fundamental themes in this webinar recording.

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