Forex News Trading Tip: How to Trade the Fomc
The Federal Open Market Committee (FOMC) decision on interest rates is one of the most powerful market movers in the forex market and when the markets move traders trading the news have the opportunity to make money.
The FOMC sets the discount rate or federal funds rate and because interest rates are set higher to induce foreign investment and therefore fight inflation during times of prosperity and lower to increase spending during recessions they are one of the main factors influencing the strength of the dollar.
Economic indicators play a huge role in the forex trading especially for traders who approach the market through fundamental analysis and trade the news. The Federal Open Market Committee (FOMC) interest rate… Continue Reading
Categories: Trading The News Tags: Continuation, economic-indicators, Federal Funds Rate, Federal Open Market Committee, Feds, fomc, Foreign Investment, forex market, forex trading, Fundamental Analysis, Interest Rate Decision, Market Movers, News Event, One Direction, Open Market Committee, Prosperity, Recessions, Strength Of The Dollar, Volatility, Whip
