Quote:
Originally Posted by forexcranium
I think most traders today focused mostly on the release of the minutes from the Federal Reserve's last policy meeting on march 20-21, which again, showed the Fed remains worried about inflation and that more rate increase may prove to be necessary. That is why, right after that report, we saw the dollar jump immediatly higher against the euro....only to drop again.
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Forexcranium,
Hey. THis is where I get confused. Why with the report indicating that inflation has risen thus a possible rate increase does the market jump for a brief period then drop back to its pre report conditions? Wouldn't you want to hold that position and just sell if further indications show that there will not be a rate increase? Thanks.