FOMC RATE DECISIONS & US DOLLAR VOLATILITY: EUR/USD, GBP/USD, USD/JPY, USD/CAD, USD/CHF, AUD/USDThe Federal Reserve is becaus
FOMC RATE DECISIONS & US DOLLAR VOLATILITY: EUR/USD, GBP/USD, USD/JPY, USD/CAD, USD/CHF, AUD/USD
- The Federal Reserve is because of launch its newest financial coverage replace Wednesday, December 11 at 19:00 GMT and will likely be adopted by a press convention from Fed Chair Jerome Powell
- Fed conferences are traditionally related to above-average volatility within the US Dollar and brings DXY Index worth motion and the most important USD foreign exchange pairs into focus
- Take a look at this text on US Dollar Implied Volatility & Trading Ranges headed into the upcoming FOMC determination and launch of the central financial institution’s newest financial projections
Foreign exchange merchants must be on excessive alert at any time when there’s a FOMC rate of interest determination on deck judging by historic currency volatility within the US Greenback surrounding financial coverage updates from the Federal Reserve. Information pulled on main US Greenback foreign money pairs since 2008 reveals that USD worth motion is especially elevated surrounding a Fed monetary policy replace.
In reality, the typical change (absolute worth) within the 24-hours earlier than and 24-hours after a FOMC fee determination is noticeably greater in comparison with the typical change on another given day for EUR/USD, GBP/USD, USD/JPY, USD/CAD, USD/CHF and AUD/USD.
CHART OF AVERAGE US DOLLAR PRICE CHANGE (ABSOLUTE VALUE) AROUND FED MEETINGS
One other method to replicate US Greenback…