After the ECB Interest Decision rate announcement last week, this week is US Federal Reserve’s turn to announce their FOMC Interest Decision Rate. Do you think US Fed will raise only 0.25% as per the market’s consensus?
First of all, due to our personal circumstances, we are short of time this week to analyze each bullish factor and bearish factor in detail. Hence, we will just give a high-level analysis and then straight to the point. Sorry for the inconvenience caused.
If you noticed before any bank collapse, a 0.5% raise or even a 0.75% raise was in the picture. After SVB collapse, then 0.75% was never in the picture anymore. Now after Signature bank and First Republic Bank’s collapse, the consensus is only a 0.25% rate hike. The market is expecting US Fed to slow down the rate hike due to the bank’s collapse and stability is highly needed at this moment. But most Fed members’ comment before the SVB case was pretty hawkish. Do you think US Fed will really slow down the rate hike for the bank’s collapse? The market is having pretty different opinions on this matter. Hence, betting on either side has a certain level of risk involved.
Recommendation
With this outlook, and to be on the safe side, we strongly recommend all Ophiuchus and Limitless EA users to schedule to stop trading for the FOMC Interest Rate announcement starting from 22 Mar till 24 Mar. You can use the stop trading period feature in the EA to do that. You can also decide to start the stop trading for a longer period to wait for the dust settles. (eg, stop trading till 25 Mar and only start trading on the week after next) if you would like.
Disclaimer – Please note that Limitless Trading is not liable for our recommendation and is not responsible for any loss or profit caused by this recommendation. This is general advice without considering your personal circumstances. You should assess your personal circumstances and perform your own research to make decisions for your trading.