FOMC RATE DECISIONS & US DOLLAR VOLATILITY: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, USD/CHFForeign exchange merchants ou
FOMC RATE DECISIONS & US DOLLAR VOLATILITY: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, USD/CHF
Foreign exchange merchants ought to be on excessive alert at any time when there’s a Federal Reserve assembly on deck judging by historic US Greenback volatility surrounding a FOMC rate of interest choice. Information pulled on spot EUR/USD, GBP/USD, USD/JPY, USD/CAD and AUD/USD since 2008 reveals that USD value motion is especially elevated surrounding a Fed monetary policy replace. In actual fact, the typical change (absolute worth) within the 24-hours earlier than and 24-hours after a FOMC charge choice is noticeably greater throughout the foremost US Greenback forex pairs listed within the desk beneath when in comparison with common change on any given day.
FOMC RATE DECISIONS & AVERAGE US DOLLAR PRICE CHANGE (ABSOLUTE VALUE)
One other strategy to replicate US Greenback volatility round commonly held Fed conferences is by capturing the day by day buying and selling vary on a FOMC choice day and evaluating it to its respective 30-day common true vary (ATR). As soon as once more, we discover that the US Greenback sometimes experiences above regular episodes of volatility in response to FOMC charge choices.