All right, by now everybody knows, FED decided to leave interest rates unchanged. That was the “street consensus”, so no surprise. This is the fact I want to stress- NO SURPRISE. In other words, business as usual. If this is the fact, than why the jitters. Here is what happened.
About 50 pips in EUR-USD in 4 minutes. And that is without surprises, or small reaction. The point I’m trying to make is as follows: this is why don’t trade FOMC release. Markets are way too jumpy.
The thing now for me is to wait for a few hours and see if the markets settled down. These kind of jumps distort charts. Dollar was getting stronger before, now I want to see if the trend is going to continue or some correction is in order. Perhaps find something in non USD crosses. I’ll let you know.
Mike K.
