Basically I'm looking for to where better to go "LONG"
Let me pay attention to July FED WATCH TOOL first.
As you can see that 25% of market participants expects 100bp hike. is because of the latest horrible CPI data.
They probably think that it forces FED to combatting high inflation by rising interest rates even faster pace.
But Let's just make it clear.
First of all, FED kept forward guidancing us that they are willing to 75bp hike june and july meetings then will concider to 50bp at the september meeting.
Here's my strategies of using divergence in between FED's expectation and Market participants' expectation.
When FED decides 75bp hike(Following by Forward guidance)
↓
25% of Market participants who expect 100bp hike have to re-balancing their portfolios.
Such as selling USD
↓
If it dips to ”LONG TRIGGERING AREA” I'd go "LONG"
↓
US' Q2 GDP data will release late that day which expects positively recovering.
↓
USDJPY will pump again ;)
Let me pay attention to July FED WATCH TOOL first.
As you can see that 25% of market participants expects 100bp hike. is because of the latest horrible CPI data.
They probably think that it forces FED to combatting high inflation by rising interest rates even faster pace.
But Let's just make it clear.
First of all, FED kept forward guidancing us that they are willing to 75bp hike june and july meetings then will concider to 50bp at the september meeting.
Here's my strategies of using divergence in between FED's expectation and Market participants' expectation.
When FED decides 75bp hike(Following by Forward guidance)
↓
25% of Market participants who expect 100bp hike have to re-balancing their portfolios.
Such as selling USD
↓
If it dips to ”LONG TRIGGERING AREA” I'd go "LONG"
↓
US' Q2 GDP data will release late that day which expects positively recovering.
↓
USDJPY will pump again ;)