Fed Announcement - Four Possible Scenarios

Date September 20, 2010

The biggest event in the forex market this week will be tomorrow’s Federal Reserve monetary policy announcement. On FX360.com, I published an extensive article talking about what the Fed may or may not do (FOMC Preview: The Key Language Changes to Look for)

Here are the possible scenarios for the U.S. dollar:

A) Fed uses the words “balance sheet expansion” in FOMC Statement > Dollar Bearish

B) FOMC Statement contains no hints about additional stimulus > Dollar Bullish

C) Fed announces small scale asset purchases > Very Dollar Bearish

D) Fed alters “extended period” language in FOMC statement > Dollar Bearish

More details can be found in my special report (FOMC Preview: The Key Language Changes to Look for)

More on this topic (What's this?)
Today's FOMC Meeting To Bring Little Change (Money Morning, 4/25/12)
Gold Prices Jump When Bernanke Hints at Stimulus (Learn Mining News, 4/10/12)
Don’t Invest From 40,000 Feet (Crossing Wall Street, 4/19/12)
Read more on Federal Reserve at Wikinvest

Category Posted in 2010 dollar forecast, Fed Rate Cut Expectations, Fed rate hike, dollar rally, forex blog

One Response to “Fed Announcement - Four Possible Scenarios”

  1. Fed Announcement – Four Possible Scenarios | Forex trading said:

    September 23rd, 2010 at 11:33 pm

    [...] full post on Kathy Lien Share and [...]

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