Chapter 6 – Fundamental News 101 (Part II)

If you can notice that on June meeting there was a paragraph “…substantial easing… should help to promote moderate growth…” basically meant that FOMC will stop cutting rates, which was a hawkish statement (market didn’t react favorably to this release because USD was under selling pressure, without actions backing up words, market went against USD despite of this hawkish tone). In August statement “Inflation has been high, spurred by earlier increases in price of energy… expects inflation to moderate later this year… inflation outlook remains highly uncertain.” Meaning that high inflation was caused by high crude price, with recent crude price pullback, inflation should ease… therefore FOMC August statement was leaning towards a neutral stance.

Newsletter

Zero spam.

Also pay special attention to who voted against and for what. Any change in voting could send a strong signal in addition to the statement.

US – FOMC Ben Bernanke

UK – BOE Melvyn King

EU – ECB Mario Draghi

CA – BOC Mark J. Carney

JP – BOJ Masaaki Shirakawa

NZ – RBNZ Dr. Allan Bollard

CH – SNB Thomas Jordan

AU – RBA Glenn Stevens

 

3rd Party Advertisement

Pages: 1 2 3 4

About Kelvin Ching

I'm a professional Forex trader and I have been trading for over 7 years. I was a series 3 broker and a registered CTA with the NFA, the main regulatory agency in the United States, and I have been involved at the highest levels in commodity trading. I also have a background in Information Technology, graphics design, and programming... I'm the co-founder of CurrencyNewsTrading.com, a site dedicated to fundamental analysis and news trading.

Comments

  1. i discovered that the US and GBP NEWS is been control by alot of sentiment,apart from the news,pls why?and what is te best pair to trade.

  2. pls hw does the interest rate moves the market.and hw do we know these

Speak Your Mind

*

Newsletter

Zero spam.