Fed Announcement – Four Possible Scenarios

The biggest event in the forex market this week will be tomorrow’s Federal Reserve monetary policy announcement. On FX360.com, I published an extensive article talking about what the Fed may or may not do (FOMC Preview: The Key Language Changes to Look for)

Here are the possible scenarios for the U.S. dollar:

A) Fed uses the words “balance sheet expansion” in FOMC Statement > Dollar Bearish

B) FOMC Statement contains no hints about additional stimulus > Dollar Bullish

C) Fed announces small scale asset purchases > Very Dollar Bearish

D) Fed alters “extended period” language in FOMC statement > Dollar Bearish

More details can be found in my special report (FOMC Preview: The Key Language Changes to Look for)

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