Fed rate decision

TWI

Senior member
2,527 252
25bp is my guess. I think main move comes on the statements and expect much of the same supportive/accommodative stance. Going to try to stop the yield rally and keep a bid under equities.
50bp would make things far more exciting and no cut would be a bloodbath.
 

khongminhtn

Junior member
19 1
25bp is my guess. I think main move comes on the statements and expect much of the same supportive/accommodative stance. Going to try to stop the yield rally and keep a bid under equities.
50bp would make things far more exciting and no cut would be a bloodbath.
Do you have any idea what the effect of their decision on the market specifically the USD and Index. I couldnt make it of as they cut rates last time and the market dropped sharply when it was supposed to do the opposite. Though I also understand that it was due to the fear of reccession.
 

TWI

Senior member
2,527 252
Markets are pricing a 25bp cut for sure and some acknowledgement of another cut before year end. Today will be mostly about what is said as unlikely there will be surprise on cut. Results are straight forward. Dovish comments send equities and bonds higher, hawkish send both lower. For USD there is more complex situation as despite dovish comments USD downside will remain limited as money supply has tightened significantly this year. However, I expect some upside for EUR and GBP from these levels. Been riding the USD bull for the past year and started to unwind it.
 

new_trader

Legendary member
6,476 1,397
Discuss it here, it’s coming in 2 days. I want to know what you guys think.
Take a look here to get some idea of what the market thinks: CME FedWatch Tool

BTW: My advice would be to make all of your trade decisions based on Technical Analysis of the market itself. Trying to trade moves based on the action or language of the US FED or any Central Banker is a fools game.

Everything is Technical Analysis.

 
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TWI

Senior member
2,527 252
Take a look here to get some idea of what the market thinks: CME FedWatch Tool

BTW: My advice would be to make all of your trade decisions based on Technical Analysis of the market itself. Trying to trade moves based on the action or language of the US FED or any Central Banker is a fools game.

Everything is Technical Analysis.

Good advice. Whether it is tech analysis or any other edge, you gotta use that and not some hope of having better insight into the FED than price action suggests.
 
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