EVENTS MOVING THE MARKETS

Playing the Federal Reserve meetings.

 

8 times à year, the US Federal Reserve (Central Bank, the FED) has its ‘regular‘ meetings to address the state of the US economy and its interest rates policy. The  next and last FED gathering this year is 18. - 19. December.

In conjuction to a FED meeting, there are great price fluctuations in the financial markets as shown through the charts below. These variations are extra ordinary trading oppertunities intraday and shorter term. The cause of a certain price move is extremely difficult to foresee or know in advance. Statistics may lead traders to a righter path in order to find potential profit from a certain trading pattern. Remember that market participants trade price to profit, nothing else.

Gold and the Nasdaq100 index are good examples of how price movements evolve through these important meetings.

Below is Gold‘s behavior over the last 3 meetings in August, September, and November of 2018. The chart displays the period from ‘just before the US open the day before the FED meeting to just after the European opening bell two days post the meeting’. The price of Gold falls a total of USD 55 over the three meetings.

FED GOLD FALL 2018

 

Below is how the Nasdaq100 index behavior acts over the last 3 meetings in August, September, and November of 2018. The chart displays the period from ‘just before the US open the day before the FED meeting to just after the European opening bell two days post the meeting’. The Nasdaq100 gains a total of 200 points over the three meetings.

FED NASDAQ100 FALL 2018

 

Here is a link to Fed news provided by FX Street.