The next FOMC Meeting and FOMC economic projections will be held on 04 Nov 2021. In the recent FOMC minutes, it had indicated clearly that Bond Tapering might start soon. Hence, bond tapering is already a high probability event and it has most likely already factored in the forex market. The concern that most traders have is about the timeline for a rate hike. There is a tendency to move rate hike earlier from 2023 to the end of 2022 based on the last FOMC minutes.
On the other side, recent US economic data such as GDP has dropped to 2% from 6.7% compared with the previous quarter and it is also lower than the consensus of 2.7%. Some analyst has indicated that the US might enter a stagflation situation like in the 1970s, which put US Fed in a dilemma situation.
In addition to that, recently, some central banks from other countries have announced some drastic acts that had surprised the market. Hence, the current market is very uncertain and a surprise act is always possible.
Recommendation
With this outlook, we strongly recommend all Ophiuchus and Limitless EA users to schedule to stop trading from 3 Nov 2021 till 5 Nov 2021 to avoid a strong market move due to this announcement. You can use the stop trading period feature in the EA to do that. You can also decide to extend the stop trading period (eg, till 6 Nov and only start trade 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. You should assess your personal circumstances and perform own research to make decision for your trading.
