November hit! FOMC meeting!

31 October 2022 273
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On November 2 at 21:00 Moscow time, a regular meeting of the Federal Open Market Committee of the US Federal Reserve System (FOMC) will take place.

 

Studies of US stocks and indicesoil and gasprecious metals and US Dollar price movement before FOMC meetings reveal the benefit of FOMC “drift” effect predictions. 

It showed that US indices (S&P 500 and DJIA), most of considered US stocks, oil (BrentWTI), gas and metals (especially silver) are prone to grow 24 hours before the Federal Open Market Committee (FOMC) meetings. Moreover, stronger growth of US stocks and indices is observed 36 hours before FOMC meetings. The dollar, on the contrary, the US is declining on the eve of meetings.

 


The following can be considered as trading instruments:

 

* the S&P 500 and DJIA indices,

* stocks of the U.S. companies that have shown the highest average profit per tradetotal profitability and acceptable drawdown of no more than 20%, such as  AppleAmerican ExpressVisa and JP Morgan,

WTI Crude Oil and natural gas,

silver,

* the EURUSDGBPUSD, and USDCHF pairs.

 

Today we will focus on the GBPUSD currency pair.

At the moment, the pair is trading around the 1.16 mark.

Fed officials have signaled they will continue to raise interest rates to bring down inflation, well above the Fed's 2% target. However, the pace of rate growth is likely to slow down, which is probably to lead to some weakening of the US dollar.

 


So, the options for entering and exiting the market:

 

Buying GBPUSD on November 1 at 9 pm Moscow time.

Deal closing:

* Take Profit 1 = 1,17, Take Profit 2 = 1,183, Take Profit 3 = 1,2.

* Either exiting the market on November 2 at 20:59 Moscow time.

* Or exiting the market on November 2 at 21:59 Moscow time.

 

We place a protective Stop Loss order below the low of the previous trading day, that is, November 1.

 


Remember the spread and money management rules!

 


Risk warning!

Trading in financial markets implies high levels of risk and may result in a loss of investment capital. The MarketCheese team is not responsible for the possible loss of your investment funds. 

This content is for informational purposes only and is not intended to be investing advice.

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