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Fed announces rates at roughly 2:15pm EST today, don’t forget.
By Sean Hyman | March 18, 2009
I can’t imagine any real change in interest rates since all of those “bullets” are all but gone. However, they could still pull some rabbit out of their hat I suppose. That’s the only risk as I see it. That “rabbit” would have to come out in the comments.
So tread carefully in the markets before the announcement and right after the announcement.
Remember that the first direction a currency pair takes off in after the announcement is not always the final direction that it will take an hour or two later. Sometimes this is the case…but it’s never a “no brainer” as many may think.
If there’s any of you that didn’t get a chance to see my You Tube video from yesterday, you can just put my name (“Sean Hyman”) into their search field or go to this link if you’d like to see it: http://www.youtube.com/watch?v=XSVKZHsFkn0
Enjoy!
Remember, that the volume will be light in the forex market up until about an hour or so after the announcement. This is when the “big players” (the interbanks) come back into the market. Beforehand they’re almost absent from the market.
In fact, some of them even choose to stop quoting right before the announcement. So that shows you how the “big guys” shy away from any new positions right before and right after an announcement like this.
So that’s just an FYI from watching the dealer’s screens as they post quotes. Hope that helps.
Sean Hyman
http://www.youtube.com/results?search_type=&search_query=”Sean+Hyman”&aq=f
Tags: blog, currency, forex, forex market, forextrading, interest, interest rates, pair, rate, Sean Hyman, video, You Tube
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