Today’s going to be a difficult session to trade, because we have the FOMC Statement coming out later in the day. While nobody anticipate seen some type of rate hike or the reality is that people will be paying a lot of attention to what the Federal Reserve has to say. After all, they recently shocked the markets by not been able to raise rates.
1 – Because of this, watch the US dollar. More than likely the day will be very quiet until we get that statement which of course comes on the afternoon in America. With this, expect a lot of volatility but we may finally get some type of clarity in some of the markets. Right now the EUR/USD pair looks very choppy and is a good metaphor for the rest of the market.
2 – We would anticipate seeing the US indices do better at the end of the day though, as the Federal Reserve still will be soft in our opinion. If that’s the case, any of the indices should do fairly well to the upside and are good opportunities to buy calls in.
3 – Precious metals will probably do fairly well also, as the shrinking US dollar would support that. On the other hand, if we get some type of shock out of the Federal Reserve, such as suggestions that a rate hike is coming, you can anticipate stocks, precious metals, and foreign currencies outside of America to get pummeled. Today should be interesting.
