One would imagine how secure the Fed keeps it’s announcements, but today there was a headline leak in the much awaited FOMC meeting minutes. Bloomberg is taking the blame for such carelessness. Few minutes before the scheduled headline, the markets started to move fast and strong. Dollar initially had a spike up, then a harsh move down. If you were short dollar today, you could’ve made some serious money; disregarding which dollar pairs you were trading. When it was finally time for the meeting minutes to be officially announced, the damage was done and the dollar fell deep below. In short, the FOMC said while September rate hike is not off the table, the U.S data is still unclear for a rate hike.
Unfortunately, I did not hit jackpot today during the announcement, however I was able to break even and give myself a small profit for the end of the day. In the morning I had great trades shorting dollar expect for USD/CAD. When oil inventories number as 2.6M vs -0.6M expected, the dollar shot up against the Canadian dollar disregarding of the falling dollar trend. The crude oil count was such an outlier compared to expectation; USD/CAD rose well above 100+ pips. Fortunately, the huge loss was negated with my profits of shorting dollar. I’m still holding onto some short dollar trades and will probably close them tonight or tomorrow. Although some banks are still hoping for a September rate hike, I’m skeptical and see a bearish future.
Check out how USD/CAD got tossed around today by the oil inventory number and the FOMC leak.