FOMC Minutes In Focus
Today’s FOMC meeting minutes will be closely watched by market participants across the board. On the back of a more-hawkish-than-expected December FOMC, market pricing for a March rate hike has jumped considerably. Indeed, with Omicron risks subsiding also, the focus is firmly on the Fed as we move through Q1.
Traders will be looking to today’s minutes to see how much discussion there was around the potential lift-off date for rates. With tapering having been increased and QE now due to end in February, the market is currently pricing in around a 60% chance of a March hike. Any further hawkish details from today’s release will likely see this pricing increase, fuelling a bid in USD.
Where to Trade the FOMC Minutes?
USDCHF
Following the false downside break of the bull channel, USDCHF has since turned higher and traded back up to test the .9189 level. While the level is currently holding as resistance, a move higher in USD post-release today could prove to be the catalyst for a breakout targeting a run back up to .9288 initially. Any further Fed hawkish will likely underscore the monetary policy divergence between the Fed and the SNB, which is committed to maintaining an easing presence in the market.
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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.