Did you have a good week? We took some lovely trades and shared the ideas in our free Telegram channel morning update video before they triggered. Are you subscribed yet? Fill in your details on the right hand side of the website home page and we can get you added! So what happened this week?
It was daylight saving time in the USA and Canada which means that for the moment the markets open at 9pm Sunday in the UK and close at 9pm Friday. This will continue for a few weeks until the UK change times on the 28th March 2021.
The big news of the week was the FOMC statement and press conference on Wednesday evening.
The FED left rates unchanged with no changes to QE. Other highlights of the FOMC statement were:
- Lower bound on Fed funds 0.00% as expected
- Upper bound on Fed funds 0.25% as expected
- Fed to continue to buy $80B/month in Treasuries
- Fed to continue to buy $40B/month in MBS
- Repeats that bond buys will continue to until ‘substantial further progress’ is made
- Unanimous vote
- Repeats language saying that policy will remain accommodative until inflation runs moderately above 2% for some time
- Says indicators of economic activity and employment have turned up recently following a moderation in activity
- Repeats that path of economy will depend significantly on course of virus and vaccinations
It always carries added risk when trading around FOMC news and even on the day itself. This was the Dollar Index as FOMC happened…
Do you have trading rules around big news announcements? A lot of traders will wait until the dust has settled and then look to trade.
On Thursday we took some great trades. USD/CHF buy limit was one of them.
From all of us at Trade & Train have a great weekend and stay safe.