Hi guys
Will any of you be trading this event or the Powell conference?
If so what is your strategy. What pair would you pick for USD strenght or weakness.
What about Equities?
I think EUR/USD for USD strenght.
AUD/USD for weakness.
Dow Jones seems to be the safest against rising treasury yields.
Was thinking about USD / JPY. But if treasury yields jump it’s good for the USD, bad for equities.
So you might get risk aversion.
Learned my lesson. I stay away.
Did you end up entering a trade?
Thanks for your reply
Actually i did, it was a short EUR / USD sell stop for a quick scalp.
It worked out well. That Powell conference was strange though.
Even reporters at Bloomberg were saying that the market was interpreting it as dovish.
As equities were rallying and later on the dollar sold off, treasuries selling off.
Even though a faster tapering was announced. Maybe it was the lift of uncertainty going away… santaclaus rally. Or fed funds futures already priced in alot of dollar strenght.
Anyway, i did this on demo. The day after on Thursday for the BoE monetary decision were they raised interest rates, had a buy stop on GBP/JPY. It was only a 16% probability they would hike rates. It was more successful than the FOMC trade i had. I know there’s a huge difference trading the news between a demo and live account. Cause of the slippage and spreads being greater than on a demo.
However i like to point out that i find it particular beneficiary to use this for completing challenges/ verification proccesses. For the majority of prop trading firms around that put you on demo account first to trial.
BoC interest rate decision earlier this month and BoE in November, the disappointment.
Worked out good for me too. Aswell did the last CPI print that met the forecast but was actually a disappointment due the consensus being a very hot inflation print. Most of these strategies or calls i get from DailyFX authors.