Greenback Falls On Dovish Fed
And finally, but only at the end of yesterday’s FOMC press conference, we were able to catch some pips. Before volatility has picked up in the evening hours of trading, we had to deal with one false breakout in the GBP/USD and three loss-making breakouts in the DAX. As for the DAX, we will try to compensate recent losses within the next trading days.
What happened at the FOMC decision, which is why the sold off even faster?
The Federal Reserve largely maintained the same policy outlook embraced three months ago, reaffirming its intention to implement 75 bp of rate cuts this year. The fact that the easing cycle is coming closer and thus, the absence of a hawkish surprise in the Fed’s statement were the reasons which is why the U.S. dollar traded lower.
Good news got the Bank of England yesterday with U.K. inflation falling faster than expected in February. This could encourage the more dovish members at the BoE to press harder for a rate cut. The market is pricing in the first move at the BoE August meeting. Today, the BoE is fully expected to leave interest rates untouched.
Daily Forex and DAX Signals
If you are keen to know where we put Take-Profit and Stop-Loss, if we trade on a specific day or not and how we manage open positions, subscribe to our signals.
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.
