US FED's New Policy Shift & Medium-term Dollar Strength Wednesday's meeting by the FED has proved true that the FED is making a new monetary policy shift to normalize sooner than later, to reducing the size of the balance sheet ; and, this action that will send yields higher. This has brought strength into the USD. Thus, USD with strength being signaled, I a positive the USD in the medium-term for another quarter or two.
This video summarizes a few trades that are being taken and that have been taken due to the highly anticipated event of a FED move, which happen sooner than expected.
Comment
⋅
Another trade entry not in the video:
Comment
⋅
Technically, the USDJPY has the wind at its back and is entering a support level. Fundamentally, the US Fed is hawkish, which contributed to a trend in the USD. Therefore, for now, the JPY will underperform the USD as large market participants anticipate the FED raising rates, which implies a more hawkish FED.