• This morning, financial markets are treading carefully ahead of today’s FOMC meeting. Expectations are high for a positive move, but there is a danger that these expectations might go unfulfilled as the downside risk increases.
•The Australian dollar is performing well this morning as is the the NZD/ USD which is recovering after confusion regarding a ratings downgrade.
Coming up today:
• German unemployment change is due at 08.55, with a small rise of 1k expected.
• At 12.15 we have ADP non farm employment change, followed by core CPI at 12.30. The big ticket is of course the FOMC statement at 18.00.
Trade Idea:
• Fed days traditionally have a positive bias and indeed expectations are extremely high for today’s meeting. However as Rob Hanna points out – This bias completely disappears when markets hit a 20 day high the day before.
This Daily Market Report is written by Dave Evans, Professional Trader. This is presented as an idea to stimulate binary option trading ideas and is not a financial advice.
Markets pause ahead of Fed
Morning Report: 08.45 London
• This morning, financial markets are treading carefully ahead of today’s FOMC meeting. Expectations are high for a positive move, but there is a danger that these expectations might go unfulfilled as the downside risk increases.
• The Australian dollar is performing well this morning as is the the NZD/ USD which is recovering after confusion regarding a ratings downgrade.
Coming up today:
• German unemployment change is due at 08.55, with a small rise of 1k expected.
• At 12.15 we have ADP non farm employment change, followed by core CPI at 12.30. The big ticket is of course the FOMC statement at 18.00.
Trade Idea:
• Fed days traditionally have a positive bias and indeed expectations are extremely high for today’s meeting. However as Rob Hanna points out – This bias completely disappears when markets hit a 20 day high the day before.
• Given that expectations are so high, it might be best to bet on disappointment today. A LOWER trade predicting that the EUR/ USD closes below 1.3700 at tomorrow’s close could return 196% if successful.
This Daily Market Report is written by Dave Evans, Professional Trader. This is presented as an idea to stimulate binary option trading ideas and is not a financial advice.
Summary:
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