Fed Decision And Trading Signals

It’s Federal Reserve decision day. The central bank is expected to raise interest rates by 25bp to a range of 5.25-5.50 percent. This move is fully priced in. The focus will be on the policy guidance for the next months. If Fed Chair Jerome Powell indicates more hawkish moves ahead, the U.S. dollar will rise. If he abandons his hawkish rhetoric instead, the dollar will weaken.

However, today’s decision could be less volatile for traders since no summary of economic projections will be provided this time.

The Fed decision is due at 18:00 UTC today, followed by the Fed’s press conference 30 minutes later.

Summer doldrums: We advise traders not invest too much or doing a trading break since volatility typically remains at very muted levels during the summer months of July and August. When volatility is low, there is more to lose than to gain.

Daily Forex and DAX Signals:

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Our trading ideas for today 26/7/23:

EUR/USD

Long @ 1.1125

Short @ 1.1035

GBP/USD

Long @ 1.2915

Short @ 1.2865

DAX® (GER40)

Long @ 16280

Short @ 16190

Disclaimer: All trading ideas and expressions of opinion made in the articles are the personal opinion and assumption of MaiMarFX traders. They are not meant to be a solicitation or recommendation to buy or sell a specific financial instrument.

Any and all liability of the author is excluded.