Forex Strategy: Mixed FOMC Forecasts Prevent Dollar Breakouts

By DailyFx | June 18, 2014 AAA

DailyFX.com -

Talking Points:

• The FOMC Tapered as expected, but the economic and rate forecasts were mixed

• Majors like EURUSD and GBPUSD were ready for a clear read to force a specific directional break

• The Fed is still on track to outpace the ECB, BOJ and RBA with hikes; but the dollar is emboldened

Sign up for the waitlist to recieve the FX Real Volume and Transactions indicators when they become available again.

Watch the recording of John Kicklighter's coverage of the FX market's reaction to FOMC rate decision. An unspoken role of central banks is to curb market and exchange rate volatility that may arise from their policy efforts. On that front, The Fed and Chairwoman Janet Yellen were quite successful. Though the lean towards the wind down in QE and eventual return to rate hikes remains in place, the market was slow to respond to the event. Meeting expectations now leaves the dollar and markets in a precarious position with high-level technical potential without a clear catalyst.

Sign up for John’s email distribution list, here.

comments powered by Disqus
Related Forex Analysis
  1. Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...
    Forex News

    Weekly Trading Forecast: FX Traders Prepare for Heavy Volatility on FOMC, GDP and ...

  2. AUD Faces A Potential “Breakout” On US Heavy Event Risk
    Forex News

    AUD Faces A Potential “Breakout” On US Heavy Event Risk

  3. New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC
    Forex News

    New Zealand Dollar at Risk on Dovish RBNZ, Status-Quo FOMC

  4. USD/JPY to Eye Fresh Highs on Less-Dovish FOMC, More BOJ Easing
    Forex News

    USD/JPY to Eye Fresh Highs on Less-Dovish FOMC, More BOJ Easing

  5. Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends
    Forex News

    Trading Video: EURUSD Traders Buckle Up for FOMC, ECB Stress Tests, Risk Trends

Trading Center