FOMC RATE DECISIONS & US DOLLAR VOLATILITY: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, USD/CHFFed conferences have traditio
FOMC RATE DECISIONS & US DOLLAR VOLATILITY: EUR/USD, GBP/USD, USD/JPY, USD/CAD, AUD/USD, USD/CHF
- Fed conferences have traditionally sparked critical volatility within the US Dollar
- A FOMC price choice is due Wednesday at 18:00 GMT and places EUR/USD, GBP/USD, USD/JPY, USD/CAD and AUD/USD vulnerable to experiencing modifications in spot costs which can be above common
- Be a part of DailyFX Chief Foreign money Strategist John Kicklighter for free live webinar coverage of the upcoming FOMC price choice
Foreign exchange merchants ought to be on excessive alert each time there’s a Federal Reserve assembly on deck judging by historic US Greenback volatility surrounding a FOMC rate of interest choice. Knowledge pulled on spot EUR/USD, GBP/USD, USD/JPY, USD/CAD and AUD/USD since 2008 reveals that USD worth motion is especially elevated surrounding a Fed financial coverage replace.
In truth, the typical change (absolute worth) within the 24-hours earlier than and 24-hours after a FOMC price choice is noticeably greater throughout the foremost US Greenback foreign money pairs listed within the desk under when in comparison with common change on any given day.
FOMC RATE DECISIONS & AVERAGE US DOLLAR PRICE CHANGE (ABSOLUTE VALUE)
One other strategy to mirror US Greenback volatility round commonly held Fed conferences is by capturing the every day buying and selling vary on a FOMC choice day and evaluating it to its respective 30-day common true vary…