The Market Is Preparing for the FOMC Interest Rate Hike Announcement

Although the USD is still in full control and all USD-related currency pairs are moving in its favour, I keep thinking that it is time for a reversal.


That could happen on the 14th December, when FOMC will announce their decision about the interest rate hike.



As I watched how all participants in the currency markets were buying the USD so aggressively I kept thinking that there would be no such hike and FOMC will leave it unchanged for now and that the market was preparing for this by buying the USD.

Today the US Non-Farm Payrolls were announced and contrary to all expectations, they had no effect on the market. Obviously the market participants have already traded the rumours about the interest hike and later they will have to trade the actual news too, when they come out.

As they saying goes “Buy the rumour, sell the news”. Naturally, everyone’s focus is aimed in that direction.

I think that there will be a USD drop and it will be powerful but short-lived but it will affect all USD-related instruments. Personally I am already preparing for this and I have begun opening positions against the USD.

I hope I’m not wrong.