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Forex: How to Trade Around Fed's Decisions on Interest Rates
You can navigate volatility on big news days with Elliott wave analysis
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By Vadim Pokhlebkin
Wed, 27 Jan 2010 16:30:00 ET |
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At 2:15 EST on January 27, the U.S. Federal Reserve said it was leaving interest rates unchanged. Volatility in currencies spiked after the news. "The dollar moved dramatically in reaction to the FOMC statement," noted editor of EWI's intensive Currency Specialty Service Jim Martens in an intraday update, "but went nowhere."
Around data releases, forex traders often buy the U.S. dollar -- but then sell it just as quickly (or vice versa). Trading at such moments can be dangerous, but it helps if you know Elliott wave analysis. Watch this classic free 8-minute video where Jim explains how.