The FED FOMC meeting is coming up - Forex News by FX Leaders

The FED FOMC meeting is coming up

Posted Tuesday, April 26, 2016 by
Skerdian Meta • 2 min read

Tomorrow is the last Wednesday of the month and the FED have their monthly meeting scheduled on this day. Same as me, almost the entire financial world is expecting the FED to stay put and not change anything regarding the monetary policy. That means that no one is expecting a rate hike this time. After they suddenly turned dovish in their March meeting, no one is expecting to hear hawkish comments on their statement either, but there`s where the catch is. You know, in this business the key to success is the power of anticipation, you should anticipate things in order to catch moves before they happen, otherwise it would be too late and the risk reward wouldn´t be worth it.

So, have we anticipated anything? If so, what is our plan and how will we manage our forex signals? Well, as we said most of the market participants are not expecting a change in the monetary policy and that´s almost 100% right in my opinion as well. But, they´re not expecting a hawkish statement either and that´s where we think they´re wrong. While we don´t expect a overly hawkish statement, we argue that the FED will remove some of the overly dovish comments from their March meeting. The outcome of the March meeting was unrealistic and the dovish comments were unjustified. But the global situation and possibly the G20 meeting pushed the FED toward that. So we think that this meeting at least will be more relaxed, therefore the market will be caught off guard. So, we are sticking to our USD/CAD buy forex signal and the AUD/USD sell forex signal. We might even hear some hawkish comments which will be a bonus for us, but we´ll see how it goes.   

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About the author

Skerdian Meta // Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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