There is no way to gauge whether the Fed is going to be hawkish or dovish in this meeting, financial markets, Wall Street is quite divided in its views, which sets up a potential volatile event.
I decided to place my straddles with the following details: –
GBPUSD: Stop if Offered at 1.3560, Spot at 1.3592, Stop if Bid at 1.3620
USDJPY: Stop if Offered at 111.00, Spot at 111.34, Stop if Bid at 111.60
AUDUSD: Stop if Offered at 0.8050, Spot at 0.8083, Stop if bid at 0.8110
As it turned out, the Fed is HAWKISH!
All my trades was triggered!
I squared all three trades as follows: –
AUDUSD: Squared at 0.8002 for a trading profit of 47bps
USDJPY: Squared at 112.23 for a trading profit of 0.65yen
GBPUSD: Squared at 1.3473 for a trading profit of 87bps
Not a bad FOMC outcome!!!
The Panthenon Investment Group 