Federal Open Market Committee – FFR, wait and see

An article by Gus    No Comments

Hey everyone hope you all had a good weekend but just wanted to make a quick post before tomorrow, since we got too big news updates coming out of the U.S. First of all the Federal Funds Rate comes out this will probably not change form the .25 percent which is is set right now and has been set at for some time. But if something does happen and they do happen to raise it we will see a big change across the board on most pairs. For those of you who do not know what the federal funds rate is or the FFR it is the interest rate which banks charge each other for loans overnight or longer. It goes a little farther than that but I feel like this is the basic knowledge of it.

Also the FOMC or the Federal Open Market Committee will issue a statement tomorrow not only regarding the interest rate of the FFR but we will see what else they say about the future of the U.S. economy and what they think some of their actions will be. The news comes out around 2:15pm Eastern Time U.S. So make sure to keep an eye out and watch out for any open trades you might have since depending on the news we can see some very large spread widening and large fluctuations, even before the news comes out with traders trying to speculate what the news will be.

In my opinion the rate wont be changed and will stay at .25 percent for some time at least until the summer, but you never know what the Federal Reserve decides to do. So I am going to sit on the sidelines and just see what happens since I already made my profits for this week.

Good luck on your trades and remember to comment on the forums and journals to see what else is going.

Thanks,

GFX