Today’s FOMC was anticipated to be fairly volatile, with the market largely managing expectations.
Nonetheless, I expected an opportunity to carve out a trade.
At 1.55am, I put in my straddle with the following details: –
EURUSD – Stop if Offered at 1.1050 with SL 1.1070, Spot at 1.1086, Stop if Bid at 1.1130 with SL at 1.1110
As it turned out, rates was kept steady at 0.50%, and statement indicated a possible further two hikes for 2016.
Fed acknowledges global slowdown and uncertainty, more importantly, it recognizes global risks may impact the U.S.
The EURUSD burst upwards triggering my Stop if Bid trade at 1.1130, I waited till about 2:08am and squared the trade at 1.1074 for a trading profit of 44bps.
I am done, not going to wait for the press conference. As usual, don’t like to chase a trade during the press conference, it’s too volatile.
The Panthenon Investment Group 