Stay out of Fed Interest Rate Decision

In a few hours time, Janet Yellen is going to announce what is the decision made on the interest rate, and possibly an insight into how are they going to handle the bond balance sheet issue which stands around 3 trillion dollars.

The Fed recently signalled it would begin to trim its balance sheet this year. Janet Yellen said earlier this month that process could begin relatively soon and economists polled by Reuters expect the announcement will come in September. (However i feel it might even come even sooner than later)

It is highly possible that the interest rate is going to remain the same at 1.25%, with the market valuation of USD most likely having already factored in this assessment.

Recent economy indicators released have fared slightly below expectations but it has in fact been on a continued rise coupled with slight bumps once in a while. With all the bearish sentiments floating in the market, do expect a wake up call as the Fed might come out with a dovish statement reflecting on the current reality.

At the same time, Janet Yellen is expected to compete once again for the Fed top post coming January, hence there is no harm in disseminating some good vibes on the economy to strengthen her case for it.

All in all, we and everyone in the world except those working in Wall Street or Fed have any idea about what is coming out as the possibilities are countless. Therefore, for those who are holding USD trades, please remember to update your stop loss and for those who are planning to enter before the decision, PLEASE DON'T!

Stay safe and green everybody!