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
USD Price Action Post-FOMC

USD Price Action Post-FOMC

James Stanley, Senior Strategist

To receive James Stanley’s Analysis directly via email, please sign up here.

Talking Points:

- In this webinar, we used price action to look at markets’ reaction to yesterday’s FOMC announcement. We host a price action webinar each Thursday at 2pm ET, and if you’d like to register, you can do so with the following link: Register for Price Action Webinar hosted each Thursday at 2pm ET.

- Yesterday’s FOMC statement saw the Fed make a slightly-hawkish addition to the statement by inserting the phrase ‘near term risks to the economic outlook have diminished.’ And while this created a quick burst of USD-strength, the move was quickly faded-out of markets as investors ramped up the expectation that the Fed would do what they’ve been known for doing of recent (staying passive).

- Yesterday’s FOMC statement had quite a few similarities to April’s meeting, in which the Fed had removed a key phrase from that statement to provide a ‘less dovish’ view to markets. And while this failed to spur USD-strength immediately, support was set three days later and the Dollar rallied throughout the month of May as the Fed continued to talk up the prospect of a rate hike in June.

- So, while the near-term reaction in the USD has been one of weakness, the prospect of eventual USD strength under the presumption of a more-hawkish Fed is certainly not out of the realms of possibility. We looked at a potential setup for long-USD exposure against the Swiss Franc, and after having a target wicked by a single pip yesterday, I went through a couple of different ways to look at re-entering the move.

--- Written by James Stanley, Analyst for DailyFX.com

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

Contact and follow James on Twitter: @JStanleyFX

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

DISCLOSURES