The Fed was hawkish and the effect is felt many hours after the big announcement. For EUR/USD it meant a big breakdown. Can it continue lower? The team at Nomura lays out the strategy: Here is their view, courtesy of eFXnews: Nomura is out with a note discussing some thoughts on the signal from the October FOMC and how this will feed into its FX trading strategy going forward. The signal: Pretty hawkish, and pointing to US monetary policy normalization being on track. “First, QE ended. Second, there were no explicit comments on weak foreign growth, a strong dollar, or tension in financial markets. Third, the Fed toned down its language on labor market slack, now saying it is ‘gradually diminishing’. Fourth, it took out the sentence saying that ‘a highly accommodative stance of monetary policy remains appropriate’,” Nomura clarifies. The strategy: Looking to sell EUR/USD but reluctant to call for a significant and broad-based repeat USD gains. “Earlier this week, we added fresh EURUSD downside (1 by 1.5 put spread 1.26/1.2375). We missed the opportunity to sell EURUSD spot right ahead of FOMC around 1.2750. But, if anything, the signal from the Fed makes us more inclined to try to get such additional EURUSD downside on board in the coming day,” Nomura advises. For lots more FX trades from major banks, sign up to eFXplus By signing up to eFXplus via the link above, you are directly supporting Forex Crunch. Yohay Elam Yohay Elam Yohay Elam: Founder, Writer and Editor I have been into forex trading for over 5 years, and I share the experience that I have and the knowledge that I've accumulated. After taking a short course about forex. Like many forex traders, I've earned a significant share of my knowledge the hard way. Macroeconomics, the impact of news on the ever-moving currency markets and trading psychology have always fascinated me. Before founding Forex Crunch, I've worked as a programmer in various hi-tech companies. I have a B. Sc. in Computer Science from Ben Gurion University. Given this background, forex software has a relatively bigger share in the posts. Yohay's Google Profile View All Post By Yohay Elam Opinions share Read Next Spanish data: CPI slides, GDP as expected – EUR/USD Yohay Elam 7 years The Fed was hawkish and the effect is felt many hours after the big announcement. For EUR/USD it meant a big breakdown. Can it continue lower? The team at Nomura lays out the strategy: Here is their view, courtesy of eFXnews: Nomura is out with a note discussing some thoughts on the signal from the October FOMC and how this will feed into its FX trading strategy going forward. The signal: Pretty hawkish, and pointing to US monetary policy normalization being on track. "First, QE ended. Second, there were no explicit comments on weak foreign growth, a strong dollar, or… Top Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.
