Just a head’s up for the day-traders out there, whom I’m sure are thoroughly familiar with the price action that occurs right around the rate decision. I usually advise that the less-experienced traders sit this event out as the increased volatility can spook even the most seasoned vets.
As I wrote on Monday, its not like that Bernanke will change anything with regard to interest rates or language going forward, but that doesn’t mean that the currency market HAS to respond as expected. Stranger things have happened. The dollar is currently positive vs. all currencies except the GBP, but that could change very rapidly if this announcement goes as expected.
This is always a great time to view the market from the safe confines of your practice account. This will give you a great idea of how much money can be made or lost during these events.
Don’t have a real-time practice account? Get one here.
Good trading to all!
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