US FOMC Meeting Minutes 01/06/10

2:00pm US FOMC Meeting Minutes
ACTION: N/A

FOMC will be releasing its meeting minutes from the last interest rate decision in 2009.  If you recall, the last FOMC meeting were somewhat neutral and disappointing as traders were looking for a more bullish tone from the statement.  One of the important phrases that traders were looking for was “…keeping rates low… Extended period.”, which if the Feds were to eliminate the “extended period.” part, it would signal a change in the overall monetary policy… However, FOMC decided to keep the phrase and most of the FOMC Statement remain unchanged from the previous release…  Here is the complete context:

The Committee will maintain the target range for the federal funds rate at 0 to 1/4 percent and continues to anticipate that economic conditions, including low rates of resource utilization, subdued inflation trends, and stable inflation expectations, are likely to warrant exceptionally low levels of the federal funds rate for an extended period.

Even though the overall tone from this Statement is rather neutral, I think FOMC purposedly toned it down with concerns over the low liquidity condition in the market at the release, as a more hawkish tone may cause the market to move in extreme volatility.  Therefore, I think we may actually get some USD buying from the FOMC Minutes today.  As always use extreme caution and a decent stop/loss order, and if you’ve never traded FOMC Minutes before, stay out of the market.

I won’t be trading this release as I’ll be preparing for my coaching session at 3:00pm for the Mastermind Mentoring subscribers.  Therefore I wish you good luck if you are going to trade this release.

Related posts:

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2. US FOMC Meeting Minutes 10/14/09
3. US FOMC Meeting Minutes 11/24/09
4. Forex Analysis – FOMC Meeting Minutes
5. Forex Analysis For US FOMC Minutes 08/30/11
6. Australia Monetary Policy Meeting Minutes 10/19/09
7. Forex Analysis U.S. FOMC Interest Rate 09/21/11
8. Forex Analysis For US FOMC Minutes 07/12/11
9. FOMC Press Conference Highlights – June 22, 2011
10. Trade Plan For RBA Interest Rate Decision 09/07/10

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