Mixed market reaction to FED

One of the most anticipated market events came today and market’s reactions were mixed. As expected Federal Reserve kept interest rates unchanged. Dollar initially fell, then rose and then dropped again. This kind of reaction must have cost a lot of market participants a lot of money. Those that tried to trade in both directions must have lost money. Of course, these kinds of things do happen. One has to be very patient and not to give in to despair when a streak of losses occur. It is far more important to follow your system and trade with discipline. 

Two key events are in the horizon. One is Bank of England rate decision that is due tomorrow at 11:00 GMT. I have intentions trading British Pound against one of commodities, possibly New Zealand currency. The same can be said about the other event: European Central Bank interest rate decision coming at 11:45 GMT. I will probably be looking at eur/nzd pair to make a long or a short trade. Non Farm payrolls will surely be the last risk event this week. I see gold as of particular interest for this event. It has risen quite a bit in the last month and will probably correct itself to make new lows in the coming weeks. Let us see what happens tomorrow though. Do not overtrade!


I also suggest you reading my post: http://forex-news-trading.blogspot.com/2013/08/ultimate-guide-to-successful-day-trading.html