It's Jackson Hole Time!
Why is this a key event: On Thursday, we have Powell speaking about - Challenges for Monetary Policy!
Now from the last FOMC meeting minutes, there was no change and no YCC so that drove the gold lower and other major currencies. However, let's focus on now what could be the outcome for this week and what should you do as it the end of the month as well? I feel most of it might of been factored in already. The next date to focus on after Thursday will be the next FOMC meeting, which is in Sept.
Economically, we are the stage where, you really need to focus on CB's globally. Even with EM currencies, some are adding extra QE some countries arent. Also think about this, Germany and other European countries don't actually want there currency high due to exporting etc. Now, focusing back on Feds, they aren't moving rates till the certain figure of inflation rises.
Things to keep in mind:
Longer term, I am weak towards dollar for a very long time - However, I won't be jumping into the market till further clarity, as I do diverse my portfolio in various instruments.
If we have same reaction towards FOMC minutes, expect gold lower and other major currencies to decline. However, if further clarity is given with regarding perhaps more QE then expect gold and other major currencies to rise. Including - Bond Yields is something to keep in mind whilst trading.
We are in for a treat. There has been great volatility considering the season we are in.
key tip: Don't over trade and longer time frame indicates shorter time frame movements.
All the best,
Trade Journal
(Just an idea, not a trade recommendation)
Why is this a key event: On Thursday, we have Powell speaking about - Challenges for Monetary Policy!
Now from the last FOMC meeting minutes, there was no change and no YCC so that drove the gold lower and other major currencies. However, let's focus on now what could be the outcome for this week and what should you do as it the end of the month as well? I feel most of it might of been factored in already. The next date to focus on after Thursday will be the next FOMC meeting, which is in Sept.
Economically, we are the stage where, you really need to focus on CB's globally. Even with EM currencies, some are adding extra QE some countries arent. Also think about this, Germany and other European countries don't actually want there currency high due to exporting etc. Now, focusing back on Feds, they aren't moving rates till the certain figure of inflation rises.
Things to keep in mind:
- Risk less than you usually would.
- Focus on the key levels - the event isn't until Thursday - I'd expect high volatility on that day!
- If you do have swing trade, perhaps take your profits before Thursday commences as anything is possible.
Longer term, I am weak towards dollar for a very long time - However, I won't be jumping into the market till further clarity, as I do diverse my portfolio in various instruments.
If we have same reaction towards FOMC minutes, expect gold lower and other major currencies to decline. However, if further clarity is given with regarding perhaps more QE then expect gold and other major currencies to rise. Including - Bond Yields is something to keep in mind whilst trading.
We are in for a treat. There has been great volatility considering the season we are in.
key tip: Don't over trade and longer time frame indicates shorter time frame movements.
All the best,
Trade Journal
(Just an idea, not a trade recommendation)