Trade Journal, Forex
Watching EUR/USD closely into the September 16 FOMC rather than acting yet. The yield story is doing the talking right now. 2yr at a 52wk high of 4.374 percent as of Friday's close, and pricing sits around 70 percent for a hike this month per Warsh's earlier comments. If that materializes, the differential argument favors more dollar strength, and 1.1613 at Monday's open does not yet reflect a market fully convinced. Not sizing into anything before the print with this much room for the number to disappoint in either direction. Logging the level for reference and revisiting after the sixteenth.
JinTinTrading posted:Watching EUR/USD closely into the September 16 FOMC rather than acting yet. The yield story is doing the talking right now. 2yr at a 52wk high of 4.374 percent as of Friday's close, and pricing sits around 70 percent for a hike this month per Warsh's earlier comments. If that materializes, the differential argument favors more dollar strength, and 1.1613 at Monday's open does not yet reflect a market fully convinced. Not sizing into anything before the print with this much room for the number to disappoint in either direction. Logging the level for reference and revisiting after the sixteenth.
EUR/USD could react sharply if the rate decision surprises either way.The 1.1613 level is worth watching, but post-FOMC price action should offer better clarity.
