US FOMC Federal Funds Rate Decision 01/27/10

2:15pm (NY Time) US FOMC Rate Decision     Forecast 0.25%  Previous 0.25%
ACTION: USD/JPY       BUY 0.50%    SELL <0.25%

FOMC is going to release its short-term interest rate decision for the first time in 2010 and mosts analysts agree that FOMC will keep current rates unchanged until Q3 or Q4 of this year, if not 2011.  As the Federal Reserve may need more economic data to justify a surprise hike in the interest rate, this rate decision will probably go as expected (or unchanged). 

However, the real focus is always the FOMC statements on future monetary policy.  If we get a rather optimistic statement with this rate decision, expect to see wide demand for USD; or if the opposite is true, then expect to see some USD consolidation over the recent gains.  However, with the recent risk aversion sentiment and demand for USD, the long-term bullish trend of USD may not be changed… 

At any rate, if you have never traded this release, it is better to stay out to avoid unnecessary risk.  Watch how I trade this release live with my updated video tomorrow, I will go over several reasons for my decision as I evaluate this release in real time; once again, if you have never traded this release, stay out of the market.

Related posts:

1. US FOMC Meeting Minutes 09/02/09
2. US FOMC Meeting Minutes 10/14/09
3. RBA Cash Rate Decision 11/30/09 (Interest Rate Decision)
4. RBA Cash Rate Decision 11/02/09
5. ECB Minimum Bid Rate Decision (Interest rate decision) 12/03/09
6. RBA Cash Rate Decision 10/05/09
7. BOC Interest Rate Decision 07/21/09
8. RBA Interest Rate Decision 09/01/09
9. ECB Minimum Bid Rate Decision 11/05/09
10. US FOMC Meeting Minutes 11/24/09