FOMC Up Next
Today’s FOMC meeting holds the potential to drive huge USD volatility. With the market now bracing itself for a larger-than-projected .75% hike, upside risks are clear. The Fed is likely to strike a concerned tone over still-excessive inflation and the need to do whatever necessary to tame rising prices. Given this, USD is likely to be well-bid on the back of the meeting provided the Fed follows through with the now-expected larger .75% hike and signals its intention to continue hiking rates throughout the year. A clear message against the view that the Fed might pause hikes after July will be the deal-breaker here. If we see this, USD should see steady demand in the near-term.
Where to Trade June FOMC?
NZDUSD
Such a move will hurt commodities prices and commodity currencies most, putting NZDUSD in focus. The pair is currently sitting on a big ledge of support at the .6210 level. Given the longer-term bear trend and the risks of a bullish USD today, bears can trade a break of the .6210 level looking for .6046 initially and a broader continuation of the downtrend thereafter.
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With 10 years of experience as a private trader and professional market analyst under his belt, James has carved out an impressive industry reputation. Able to both dissect and explain the key fundamental developments in the market, he communicates their importance and relevance in a succinct and straight forward manner.