Forex Trading Strategies Summary 29.07.2015

EUR/USD: Muted Reaction To FOMC Statement
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[li]Following a two-day policy meeting, Fed officials said they felt the economy had overcome a first-quarter slowdown and was “expanding moderately” despite a downturn in the energy sector and headwinds from overseas. The central bank nodded in particular to “solid job gains” in recent months.
[/li][li]The statement may strengthen expectations of a rate hike at the Fed’s September meeting. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen “some” further improvement in the labor market and is reasonably confident that inflation will move back to its 2% objective over the medium term. With two employment reports yet to come, the addition of the word “some” suggests to us that the FOMC should have more than enough information at its September meeting to effect a start to rate normalization then.
[/li][li]The Fed did not clearly hint at a September hike, but there is plenty of time between now and the September meeting for FOMC officials to prepare markets for a September hike.
[/li][li]The market reaction to FOMC statement was muted. Investors are waiting now for US second-quarter GDP growth reading (tomorrow 12:30 GMT), that in our opinion may be slightly above market expectations. We stay EUR/USD short.
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MAJOR PAIRS:

LONG/SHORT - taken position
BUY/SELL - pending order
Risk Factor - green “" means high level of confidence (low level of uncertainty), grey "" means medium level of confidence, red "” means low level of confidence (high level of uncertainty)

Source: Growth Aces Forex Trading Strategies